How To Dramatically Increase Your Credit Score Fast

Boost your credit score by up to 100 points through strategies such as making multiple monthly card payments and rectifying errors in your credit report.

If your credit score is lower than desired, there are potential strategies to swiftly enhance it, with the potential for a significant increase of up to 100 points. This is particularly true for scores categorized as "fair" or "bad," where substantial improvements can be achieved.

Watch our latest video on the top 5 strategies to dramatically increase your credit score

Is a 100-point boost feasible? According to Rod Griffin, senior director of public education and advocacy at credit bureau Experian, the answer is affirmative. Griffin notes that individuals with lower scores are more likely to attain a 100-point increase, as there is greater room for improvement, and even small adjustments can lead to significant score enhancements.

To expedite credit improvement, consider the following strategies:

1. Strategic Payment of Credit Card Balances: Manage your credit utilization, which refers to the portion of your credit limits utilized at any given time. Aim to use less than 30% of your limit on any card, with lower percentages being more favorable. The most successful individuals in terms of credit scores typically maintain single-digit credit utilization. Track your credit utilization on each card and overall by accessing your credit score profile with tools like NerdWallet.

   To ensure a low balance is reported to the credit bureaus, make payments before the billing cycle ends or consider making multiple payments throughout the month. This proactive approach will help maintain a consistently low balance.

   Impact: Highly influential, as credit utilization is a significant factor in credit scores, second only to timely payments.

   Time commitment: Low to medium. Set reminders to make payments or utilize alerts on your credit card accounts.

   Speed of effectiveness: Fast. Once a lower balance is reported by your credit card issuer, the reduced utilization will promptly contribute to score calculations.

2. Request Higher Credit Limits: Increasing your credit limit while maintaining the same balance can swiftly reduce your overall credit utilization, leading to an improvement in your credit score. If your income has risen or you have accumulated more years of positive credit history, there is a good chance of securing a higher limit.

   Before making this request, plan to maintain consistent spending habits and avoid maxing out the additional available credit. If higher limits pose a temptation, this strategy may not be the most suitable for you.

   Impact: Highly influential, as credit utilization significantly affects credit scores.

   Time commitment: Low. Contact your credit card issuer to inquire about a higher limit. Explore the possibility of avoiding a "hard" credit inquiry, which could temporarily lower your score.

   Speed of effectiveness: Fast. Once the higher limit is reported to credit bureaus, it promptly reduces overall credit utilization—provided the extra credit is not fully utilized.

3. Become an Authorized User: If a family member or friend holds a credit card with a substantial limit and a positive payment history, consider requesting to be added as an authorized user. You don't necessarily need access to the card or the account number for your credit to benefit.

   Ensure that the account reports to all three major credit bureaus (Equifax, Experian, and TransUnion) for maximum impact, as most credit cards do.

   Impact: Potentially high, especially for credit newcomers with a limited credit history. The effect may be smaller for those with established credit seeking to offset missteps or reduce credit utilization.

   Time commitment: Low to medium. Discuss the arrangement with the account holder, specifying whether you'll have access to the card or simply be listed as an authorized user.

   Speed of effectiveness: Fast. Once added and the credit account reports to the bureaus, your credit profile can benefit promptly.

4. Timely Bill Payments: No credit improvement strategy is effective if you consistently pay bills late. Late payments can remain on your credit reports for seven years, negatively impacting your credit score.

   If a payment is overdue by 30 days or more, contact the creditor promptly, settle the payment as soon as possible, and inquire about ceasing reporting the late payment to the credit bureaus. Even if this isn't feasible, bring the account up to date promptly, as every month marked as delinquent can harm your score.

   Impact: Highly influential. Timely bill payments have the most significant impact on credit scores.

   Time commitment: Low. Avoid missed payments by setting up reminders and considering automatic payments to cover at least the minimum amount.

   Speed of effectiveness: Varies based on the number and recency of missed payments. The impact of delinquent payments diminishes over time, and introducing more positive credit accounts can expedite this process.

5. Rectify Credit Report Inaccuracies If there's an error on any of your credit reports, it might be negatively impacting your score. Swiftly addressing and disputing inaccuracies on your credit report can be instrumental in enhancing your creditworthiness.

You have the right to obtain free weekly reports from each of the three major credit bureaus. Utilize AnnualCreditReport.com to make your requests and carefully scrutinize the reports for discrepancies, such as instances where payments are marked as late despite being made on time, instances of someone else's credit activities erroneously linked to yours, or outdated negative information that should no longer be listed.

Once you've pinpointed these inaccuracies, initiate the process to dispute credit report errors.

Impact: Outcomes may vary, but the impact could be substantial, particularly if a creditor is erroneously reporting a missed payment.

Time commitment: Moderate to high. Requesting and reviewing your free credit reports, disputing errors, and monitoring the subsequent steps require some time. However, this process is worthwhile, especially if you aim to fortify your credit profile before a significant financial move, such as applying for a substantial loan. If a mortgage application is in your future plans, address disputes well in advance.

How fast it could work: Results vary. The credit bureaus typically have 30 to 45 days to investigate and respond. While some companies claim to expedite error disputes for a rapid credit improvement, exercise caution in proceeding with such services.

6. Address Collections Accounts Resolving collections accounts is crucial for mitigating the risk of legal action and potentially persuading the collection agency to cease reporting the debt post-payment. If collections accounts are inaccurate or surpass the allowable reporting period, you can also work towards removing them from your credit reports.

Impact: Outcomes vary, but successfully handling a collections account can significantly improve your credit, given that it is a substantial negative mark.

Time commitment: Moderate. Request and review your credit reports, then devise a plan to address listed collections accounts.

How fast it could work: Moderately quickly. On scoring models that discount paid collections, such as VantageScore and newer FICO versions, the improvement is swift once the paid-off status is reported. However, processes like disputing or requesting goodwill deletion may take a few months.

7. Utilize a Secured Credit Card Building or rebuilding credit is achievable with a secured credit card, backed by a cash deposit equal to your credit limit. Your responsible use of this card, coupled with timely payments, contributes positively to your credit history.

Impact: Outcomes vary. This strategy is beneficial for individuals new to credit or those seeking to recover from credit challenges.

Time commitment: Moderate. Seek a secured card that reports to all major credit bureaus and explore alternative cards that don't necessitate a security deposit.

How fast it could work: Several months. The objective is not just to possess another card but to establish a record of low balances and punctual payments.

8. Credit for Rent and Utility Payments Rent-reporting services can incorporate your on-time rent payments into your credit reports, providing an additional layer of positive credit history. Services like Experian Boost enable you to include payments to various utilities on your credit report.

Impact: Outcomes vary.

Time commitment: Low. Once set up, minimal additional time is required.

How fast it could work: Boost operates instantly, but the effectiveness of rent-reporting may take some months, contingent on your payment history.

9. Diversify Your Credit Mix Introducing a new credit account in good standing, especially one of a type you don't currently have, can positively impact your credit. Consider obtaining a loan if you primarily have credit cards or vice versa.

Impact: Outcomes vary. This strategy is most beneficial for those lacking variety in their credit portfolio.

Time commitment: Medium. Assess whether the potential boost to your score justifies the time spent researching and applying.

How fast it could work: Rapidly. Once the new account's activity is reported to credit bureaus, it initiates a positive impact.