Financial Education

How to boost your credit score fast: an easy guide

Looking for ways to improve your finances? Then you’re in the right post! Learn how to boost your credit score and get better financial features!

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The fastest way to get your credit score up and enjoy better benefits and rates

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Learn how to boost your credit score fast. Source: Adobe Stock

If you want to access better financial products, having a good credit score is a must! But if your credit history is not-so-good, it is time for you to learn how to boost your credit score fast!

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In this article, you’ll learn what a credit score is and why this number is so essential to your finances. And lastly, we’ll fill you in on the best tips to boost it! Your financial journey starts now!

What is a good credit score?

The first thing you need to know about credit scores is that it is fundamental for your finances. This number will show lenders how responsible you are with credit usage.

Three major credit bureaus are responsible for collecting, analyzing, and distributing customers’ financial information in the U.S.: Equifax, Experian, and TransUnion.

The disbursed information will be used by the credit scoring systems that will score your creditworthiness.

The most common credit score model is the FICO Score, which ranges from 300 to 850, meaning:

  • Excellent – 800-850;
  • Very Good: 740-799;
  • Good: 670-739;
  • Fair: 580-669;
  • Poor: 300-570.

Your credit score is based on your credit history. Still, five main factors will be decisive: your credit type, payment history, credit history length, credit usage, and your recent activity.

In brief, a credit score will show lenders how likely you are to pay your debts. So, the higher your score, the higher your chances of achieving your financial goals.

Why is it important to have a good credit score?

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Find out why it is important to have a good credit score. Source: Adobe Stock

Your credit score reflects how you deal with your finances and how trustable you are with money.

So, if you have any financial ambition and want to achieve it without trouble, a credit score will be of great help.

People with good credit will be considered lower-risk borrowers. It can be decisive for whether you qualify or not for an important loan.

So, if you intend to apply for a mortgage or auto loan, the lender will require a minimum credit score.

This three-digit number will help you save money in the long term. People with good credit can get lower fees, interest rates, and superior benefits.

Also, it will help you qualify for better credit products.

Your professional life can be influenced by your credit too. Companies might check your credit report before hiring or giving you a promotion.

Even in the house renting process, your credit report can be decisive.

Consequently, your credit score will actively impact your life in different areas. If you want to guarantee healthier finances, it would be good to start by improving your credit score.

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5 ways to boost your credit score fast

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Five ways to boost your credit score fast! Source: Adobe Stock

Now that you know what a credit score is and why it is essential to have good rates let’s begin with five tips to help you boost your credit fast.

1. Pay off your credit card bills

Since the payment history is one of the major factors impacting your credit score, you need to stay on top of your credit card bills.

Try to make at least the minimum payment on time. However, if you have enough funds, pay down your revolving debts.

The sooner you pay your balance; the sooner creditors will report your payment monthly. This way, you’ll keep a lower credit utilization rate.

2. Request higher credit limits

You can stay at a lower credit utilization ratio when you have a higher credit line. It can be helpful since credit utilization highly influences your credit score.

However, pay attention to your current situation and income, so you won’t have trouble managing your money! You can request a credit limit increase through the credit card issuer itself.

Once you get a higher limit, it will be quickly reported to the credit bureaus, and your score will be increased within 30 days.

3. Check your credit report frequently

To quickly boost your score, you can periodically review your credit report looking for any errors that might impact you negatively.

It doesn’t happen that often, but credit bureaus can make mistaken reports. The most common ones have misreported payments and fraudulent or duplicated accounts.

You can check your credit report for free at the Annual Credit Report website. You can dispute it and request its removal if you notice any error.

4. Become an authorized user

This is a good way to boost your score. If you have a friend or a relative with a higher credit limit and a good credit history, ask if you can be an authorized user.

The account will be added to your credit reports. Hence you can benefit from the primary account. It is a fast way to raise your score since the reports are made almost immediately.

5. Avoid applying for new accounts

When you apply for a new credit product, a hard inquiry will be made on your credit score. This can impact negatively and might hurt your score.

So you want to keep good credit history, try to work out the accounts you already have before applying for new ones. This way, your credit history will remain stable.

Bottom line

Now it is up to you to implement these tips in your day-to-day life and start your financial journey.

Remember that a good credit score will guarantee you achieve your financial goals and wealthier life.

In case you need more tips, read the article below. We’ll explain how to organize your finances with seven simple steps! So read on to learn more!

How to organize your personal finances

Learning how to organize your personal finances is the first step on the road to financial success. Check out these seven simple tips!

About the author  /  Beatriz Vieira

Beatriz Vieira is a producer and copywriter who is part of the finance writer team in this portal. She has a degree in Journalism and aims to improve her bilingual writing skills. Her subjects of most significant interest are culture, finances, and self-development.

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