How to Raise Your Credit Score 100 Points

By: Heather Hanks May. 21, 2019

Picture this scenario. You find yourself telling your lender that, “My credit score dropped 100 points in a month.” Now you’re left wondering how this happened and what your options are. The truth is that it doesn’t take much to hurt your credit. A few missed payments here and there will do the trick. But it also doesn’t take long to improve credit score 100 points if you follow the steps we recommend.

You won’t be able to raise credit score 100 points overnight. But after a few months of making good decisions, you should start to see improvements. When you boost credit score 100 points, you’ll enjoy better financial options. A good credit score can get you into your dream home or car. It can also give you more favorable terms on loans and lines of credit. The best thing you can do is make timely payments every month. Make sure no bill is late. You’ll also want to get caught up on past due bills and have a mix of credit types. Every point counts when it comes to your credit score. Here’s how to increase credit score by 100 points

Check Your Credit Score

The first step to take in raising credit score 100 points is to check your credit score to see where you are at. Be careful when you check your credit score because this can negatively impact your credit. Some people don’t realize that checking your credit score hurts it. You may want to check to be sure that checking your credit score does not negatively affect it before proceeding. Many websites will check your credit score for free. However, a hard pull on your credit often lowers the score. On the other hand, having a soft pull on your credit is not a bad idea. This is because you'll be able to check your credit score without it impacting the number.

Research shows that you can check your credit score for free once per year using a government-backed website. All other credit checks may cost you money. It's a good idea to make sure that your credit score is not affected even when you use a government-backed website. Many banks and lenders can check your credit score for you if you work with them. Ask your lender or Bank whether or not your score will lower by checking it through there system.

GET YOUR CREDIT SCORE - IT'S FREE!

If your credit score dropped 100 points, then it's probably because you have too many late payments on your credit history. Your credit score can also drop if you take out more money than you can afford to repay. This is why it's always a good idea to improve your credit before taking out loans. Every payment you make matters. It's important to make timely payments on auto loans, mortgage payments, student loans, and utility bills. Your personal credit score can also dictate whether or not you get a business loan. This is because many small business loans are based on your personal credit history. Therefore, improving credit score 100 points can also help you get a loan to start your own business one day.

Pay your bills on time

After you have checked your credit score standing, the next thing you'll need to do is make all your payments on time. If you want to know how to increase credit score by 100 points in 30 days, then pay attention to this step. Everyone has bills. The best way to raise credit score 100 points is to start paying your bills on time. Most people don't realize that all payments show up on your credit history. If you have a history of not paying your bills on time, then your credit score suffers. Be sure to pay each and every bill on the due date or sooner if you can. This is the best suggestion we have for how to improve credit score 100 points. It's also the easiest place to start because everyone has at least one bill they have to pay each month. Paying your bills on time indicates that you are responsible with your money. This information will be reflected on your credit report and used to determine your credit score. You can increase credit score 100 points simply by paying your bills on time each month. If you have problems remembering the due date of your bills, then try setting reminders for yourself. Your smartphone is a great place to start. You can use several apps to send push notifications to your phone when a bill is due. This will help ensure that you never forget to pay a bill on time. You can also write yourself notes and leave them in places that you are sure to look. Do whatever it takes to remind yourself when bills are due so that you never have a late payment. This is the best piece of advice for how to raise your credit score 100 points.

Pay off any collections

Along with paying your bills on time, you want to make sure to pay off any collections. Having debt will prevent you from getting to your goal of how to raise credit score 100 points. Debt collections are the first thing that show up on your credit report to negatively affect your score. Paying off your collections won't clear your negative credit history, but it will improve your future credit score. You can work with collections agencies to pay a small amount each month until your debt is paid off. Most agencies will work with you as long as you are willing to make payments. Once you have resolved all your debt, you should see an improvement in your credit score.

The best way to pay off any collections is to save money monthly and make small payments. It helps to write all your payments out and determine where you can make adjustments in your budget. Avoid taking out a loan to pay off your debt. This may cause you to go into further debt if you cannot make your payments. You may also want to consolidate your debt so that you can pay it off affordably. Many companies are willing to consolidate your loans to help you pay them off. Debt consolidation allows you to make one small monthly payment instead of several payments on numerous loans. It's a great way to pay off your loans quickly and ensure that you don't miss a payment. Look for a debt consolidation company with a low-interest-rate to save you money over time. Don't fall into a trap by borrowing more money to pay off existing debt.

Get caught up on past-due bills

Our next suggestion for how to get 100 points on credit score is to get caught up on your past due bills. Having past due bills show up on your credit history is a good way to reduce your score. This is a red flag to banks and lenders because it shows that you are not financially responsible. You will not raise credit score fast 100 points if you have past due bills on your account. Be sure to pay all past due bills first before they go into collections. It is hard to dig yourself out of a hole once you are in debt. You can use the same method to get caught up on past due bills as you can to pay off collection agencies.

Start by making a list of all past due bills and making a payment plan to fulfill them. You can even work with a financial advisor to help get you on track. Many banks and online agencies offer this service for free. An adviser should be able to take a look at your financial habits an income and tell you where you can make improvements. He or she should also be able to help you set up a payment plan that can help you get caught up on past due bills. Getting caught up on bills and paying off collections is your best bet for how to get credit score up 100 points.

Keep balances low on your credit cards

Keeping balance is low on your credit cards means that you will be able to pay your balance off in time. The worst thing you can do is to overspend. This causes you to fall behind on payments and may eventually land you in debt. Low balance of payments are a great plan to add to the process of how to raise credit score 100 points in 30 days. We recommend keeping your monthly payments as low as possible until you get your credit score up. This will ensure that you can make your payments on time without falling behind. Avoid making large charges to your credit card while you are in the process of rebuilding your credit.

Start by making small purchases at the grocery store or gas station. Pay these off on time each month. You can also consolidate any larger loans you have into smaller payments. This will help make sure you don’t fall behind. After several months of making timely payments on small balances, you should see your 100 credit score start to form. You can consolidate your debt, mortgage payments, or student loans. The key is to keep your payments small so that they are affordable. Making timely monthly payments is the best way to build credit, but you might have a hard time doing this if your payments are too large. Minimize your costs where you can to help build your credit. It helps to take out a line of credit with a cap. This ensures that you will not be able to overspend. Make sure your limit is on the low end so that you don't take out more than you can afford to pay back.

Pay off debt rather than continually transferring it

The process of how long to raise credit score 100 points will extend the more you transfer debt instead of paying it off. Don’t put off paying your debt. It will only cause your credit history to become clogged with negative items. This makes your credit score hard to bounce back from. The sooner you pay off your debt, the quicker you’ll be able to raise your credit. Transferring your debt may hurt your credit score because this information will be recorded on your credit history. This behavior indicates that you aren’t ready to pay it off and your credit will stay the same or drop even lower than it already is.

Transferring your debt can also hurt your credit by forcing you into a contract with a high interest rate. Be sure to pay off all loans and debt and avoid transferring this debt around unless it’s to consolidate your loans into one small monthly payment. The last thing you want to do is inquire more interest that you have to pay off in addition to what you already owe. Again, you can work with an advisor to come up with a system where you can pay off your debt affordably. Financial advisors are happy to help look over your finances. Ask your bank or lender for help.

Don't close paid-off accounts

Keeping paid-off accounts helps build your credit because this information will continue to show up on your report. Additionally, closing your account can negatively impact your credit score. Keep old, paid-off accounts open, even if you aren’t using them. Paid-off accounts indicate that you achieved something good. It shows that you are capable of paying off accounts and making timely payments. Creditors and lenders like to see these features on your credit history. This will help you with the process of how to raise my credit score 100 points.

Canceling a credit card can negatively impact your credit. Plus, you don’t really need to cancel it if you have your account paid off. You can simply stop using it and keep the account open. This will ensure that your credit score won’t take a hit by closing the account. You also will be less likely to use the account if you know you have it paid off. It's especially important not to close your account if you still have a balance open. This can hurt your credit score worse than keeping a paid off account open. There is no damage done to your credit if you keep paid off accounts open and do not use them. It will indicate that you have the ability to pay off your account, which shows financial responsibility. This can also help boost your credit worthiness.

Shop for new credit over a short time period

How long does it take to improve credit score 100 points? That depends on what your credit score currently is and how long you’ve been making timely payments. Sometimes it helps to take out a credit line over a short time period to ensure that you don’t get in over your head. Taking a line of credit out for a few months only is a good way to add positive items to your credit score. But if you take out a line of credit for too long, you may fall behind on payments. This can drop your score.

When you shop for a new line of credit, these inquiries can stay on your report for up to two years. Having too many inquiries on your credit report can negatively affect your score. The amount of points that your credit score will go down depends on each person's case. General credit inquiries usually only have a small impact on your credit score. For example, one inquiry may take less than five points off your credit score. As you can see, having too many of these can add up quickly and take off more points than you'd like. These credit inquiries can have a more substantial impact on your credit if you have a short credit history. People who have six inquiries on their credit reports can be up to eight times more likely to declare bankruptcy. This is compared to someone who has no inquiries on their report.

Have a mix of credit types

Having a variety of different credit types can help boost your credit. According to FICO, having a mix of credit types contributes 10% to your credit score. There are several different types of credit you can have. One of the most common types is known as revolving credit. This is a line of credit that allows you to borrow money from it freely up to a certain amount. Revolving credit has a cap or a credit limit that you cannot exceed. this type of credit line usually refers to credit cards and requires you to make monthly payments as well as interest charges if you have a balance.

The next type of credit you can have is called installment credit. This refers to alone with a set amount of money and a regularly occurring payment schedule. examples of installment credit include student loans, auto loans, mortgages, and personal loans. It's one of the most common types of loans to have. Finally, open credit is rare and does not typically show up on your credit report. It features an account that you can borrow money from like a credit card but must be paid back in full each month. You can use open credit on your credit card or you can stick with revolving credit. Having a mix of these three types of credit on your report can help boost your credit score. keep in mind that it's not worth it to take out more lines of credit than you can handle. Most people find that it helps to use a credit card with a cap so that they don't overspend. If you cannot make your monthly payments on time, then do not take out another line of credit.

Apply for new credit sparingly

The more you apply for credit, the more you run the risk of negatively impacting your credit score. This is because each time you apply for credit, your bank or lender will do a hard pull on your credit score. Each time a hard pull is done, your credit score is negatively impacted. Only apply for credit when you absolutely need it. This will help ensure that your credit score will increase as much as possible. If you do apply for credit, ask to have a soft pull done first. This will not affect your credit. However, before you are approved, most lenders will do a hard pull.

Applying for new credit often is also a sign that you are financially unstable. Banks and lenders see this as a red flag and may not be willing to work with you. This makes it hard for you to establish a good credit score or boost an existing one. Do not apply for credit unless you are absolutely sure you need it and can make payments on your account in a timely manner.