How to Raise Your Credit Score by 100 Points

Jenn Leach

Photo by Paul Felberbauer on Unsplash

So you want to raise your credit score? That’s a great choice as credit can really get you far in society, from giving you the buying power to purchase a house or your car or other essentials in life.

While you don’t necessarily need credit to live, it definitely helps. Here are four ways to raise your credit score by 100 points.

What impacts your credit

There are several things that go into calculating your credit score.

And there are many everyday things that people do that they don’t realize can bring down their score like keeping a high balance on your credit card or paying your loans 31 days late.

Credit measures your level of risk so high credit score means you are a lower risk to lenders and low credit scores mean that you are a higher risk.

People with high credit scores are able to enjoy getting qualified for loans and credit at lower interest rates.

This gives them more buying power and more variety when it comes to buying what they need.

On the other side of that, people with low scores have a more difficult time trying to qualify for things like auto loans or home mortgages at all let alone at a low interest-rate.

So this is why credit is so important.

If you make some mistakes in life with your credit, it happens ano it can happen to all of us. Sometimes life happens and you have to put the most important things ahead of paying your bills on time like keeping a roof over your head or buying food.

There are definitely ways that you can recover from this and let’s dive into those credit boosting ideas Now.

4 Ways to Grow Your Credit Score by 100+ Points

Lets go!

Pay down at your credit cards

If you have the money to do this then you can look at your credit score changing and as little as 30 days.

You don’t have to pay down your credit card balances to zero. As a rule of thumb you want to keep balances at no more than 30% of the available credit limit.

For example, if you have a credit limit of $1,000, that means your balance should be no more than $300.

And for your credit report this is cumulative so you want to look at the total of all your credit limits and hold balances at no more than 30% of those total credit limits. That means if you have multiple credit cards with credit limits up to $10,000 then your balances should not exceed $3,000 in total for all cards.

If you don’t have the money to do this then just continue to try to pay down your cards as much as you can.

And if you can qualify for a new credit card with a low interest-rate like a 0% APR introductory rate, it may be worthwhile to do a balance transfer which can help you save on interest and the new card credit limit will make your revolving balance ratio lower on your credit.

Just keep in mind that credit cards can come with fees and include an annual fee, monthly fee, or fees for balance transfers so make sure you review all of those to make sure that this still makes good financial sense. 

Get on as an authorized user

This is a little known trick that many people don’t know.

On credit cards people can be added as authorized users. This is typically done for kids that are trying to build their credit and their parents put them on their credit card as an authorized user.

This is super helpful if the credit card holder has strong credit because then without doing any work as an authorized user, your score will naturally start to rise.

In fact this is so helpful that businesses are being born helping people boost their credit by adding them as authorized users.

I listened to a podcast recently where a business owner had this kind of business.

He had a really good credit score and many credit cards so for his credit repair business he would add up to 10 people as authorized users on his personal credit card.

He had 10 authorized user spots on each credit card and so we would add 10 people onto that card as an authorized user without giving them access to the card or card information and that would naturally help them build their credit.

He charged $650 per authorized user per month so 10 people on one card means $6,500 of monthly income for credit repair business. And for five or 10 credit cards under the same scenario, the income is amplified even further.

More and more businesses are doing this in the credit repair space and it’s helping them earn income while helping their customers build their credit.

Bottom line, if you have someone that has good credit (like a parent, friend, etc.) that can add you to their credit card, do it, as it will help you effortlessly up your credit score!

Pay your bills on time

Paying your credit cards accounts on time is a pivotal part of boosting your credit.

If you’re having trouble making your payments on time then contact your creditors to change your due date. And remember if you make a payment 30+ days past due then that will hit your credit report and take you backwards.

Get credit-building accounts

There are credit accounts you can get that are guaranteed to approve you. These can help you build your credit and can show creditors that new companies are willing to take you on as a credit risk after your poor credit history.

These are going to come in the form of secured credit cards.

With a secured credit card you make a deposit in the amount of your credit limit and that takes away the risk the creditor will take on with the credit card.

If you happen to default on your payment or default on the card altogether then they can collect that deposit to recoup any possible loss.

For example, if you open a secured card with a $500 deposit then your credit limit will be $500. With the security cards, usually after a period of time the deposit can be returned to you and the card may turn into an unsecured credit card.

Make sure to make your payments on time and this will help you build your credit score.

Final Thoughts

There you go, four ways to boost your credit score by 100 points fast. If you can make some of these changes within a month then you can see your score start to transform that very same month. Good luck.

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Millennial entrepreneur and writer bringing you fresh content and ideas about making money, side hustles, personal finance, budgeting, and lifestyle. Connect with me:

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