How to Raise Your Credit Score Quickly?


Your credit score matters and can be a problem if you have poor credit. It can reduce your chances for getting credit cards, loans, and other financial help. Thankfully, there are ways that you can raise your credit score.

How to Improve Your Credit Score

  • Prompt Bill Payments– Make sure you pay all bills on time. If you make late payments, this impacts your credit score.
  • Keep low balances on credit cards – You don’t want to have high balances on your credit cards as a high debt load impacts your credit in a negative way
  • Only buy new credit accounts if you need them – You won’t improve your credit score just by having more credit accounts so use only what you need.
  • Pay off debt, don’t move your debt around ­– Don’t close out used credit as a way to improve your credit score. If you have the same debt, but fewer accounts this may hurt your credit score.

Steps to Improve Your Credit Score Now

One of the best things you can do to improve your debt is to pay bills on time. Even if you have small debts, paying bills on time is a good idea. You should make sure your outstanding debt is minimal and that you’re not accruing more debts. Don’t apply for credit that you don’t need all the time.

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If you apply for credit, this shows up on a credit score and lenders may think that you’re adding to your debts. Try to take advantage of credit you already have to show your ability to handle credit in a responsible manner.

Improving Your Score Takes Time

If you have late payments on your credit score or a lot of credit inquiries, just pay off your bills and then wait. Your credit score will improve over time and you can’t fix bad credit right away.

How Your Credit Changes Will Impact Your Credit Score

Some action you take will impact your credit score. There are several factors to take under consideration here. Your credit score is based upon what is found in your credit report. If there’s changes to the credit report, this can impact your credit score.

If you close two accounts for example, this will lower the number of open revolving accounts and will improve your credit score, but this decreases the amount of credit that you have. With less credit, you have a higher utilization rate which is also named the balance-to-limit ratio and this will lower a credit score.

Any change to your credit will impact the credit score, but getting an accurate assessment of what any one change will do to the report is impossible. Credit risk factors which are provided with your credit score are important. These identify which credit elements from your credit history are impacting your credit score and then the right actions can be taken by you to improve your credit score.

The Time it Takes to Rebuild Credit Scores

You don’t rebuild a score, you rebuild your credit history and this is then shown in the credit score. When there’s a negative change the time it takes to rebuild depends on the actual change to the score.  Negative changes are things such as a collection account or unpaid bills. This continue to impact the credit score until they have been in the score for a certain length of time.

  • Any delinquency is in the score for seven years
  • Public record items are in the score for seven years, but some items such as tax liens that aren’t paid or bankruptcies may be in the score for ten years
  • Any inquiry into your credit score stays for two years

Good luck!


Credit Scores Introduction – Part 1

Do you know your credit score? If you don’t, you’re not alone. In fact, as many as 60% of Americans don’t know what their credit reports say and the score that comes with them.

They’re also not aware that there are more than just one score out there for them. Did you know that there are several because so many creditors and lenders have their own systems?

They do, actually. These creditors have their own system that uses their consumers’ credit information to evaluate them and determine a score based on what is found within the credit information and the company’s own protocols.

Creditors and lenders use these credit scores they create or ones they use from the credit bureaus to help them determine whether or not they should extend credit to an applicant. Sure, other factors can play a part in their decision, but your credit score’s health plays a major role in their decision.

You’ll find that your score is based off a model from a reporting agency when your information is pulled, and that score can be changed based on any changes within your credit information that’s reported.

Scores from the Three National Bureaus


The records of your credit history and other information is kept, along with millions of others, within the three national credit bureaus, which is used to generate your credit score based on the models they’ve designed for themselves.

Each bureau has its own model and standards that will affect your score. You’ll find that the bureaus may have differing information on your credit report because some of your lenders and creditors may not send your account information to one or two of them for score generating purposes.

To find what each reporting bureau has on your information, you can gain free copies of your reports each year due to the Fair Credit Reporting Act.

While you can gain access to your reports for free, you’ll most likely face a small fee for the scores.

Factors that will typically be used by these three reporting bureaus may vary, but can include:

  • On-time versus late payments within your payment history. Late payments can have negative impacts on your credit.
  • Your credit utilization based on how much you’ve used and how much you have available. Less utilization is better than higher usage rates.
  • How many times you’ve applied for credit and created hard inquiries on your report. Only apply when you need credit, not when you want it.
  • How many installment loans you have.
  • How many car loans you have,
  • How old is your oldest account and the average age between all your credit accounts. The older, the better.
  • What is the average limit on your credit cards. The higher, the better.

Other Sources of Credit Scores

While we all have heard of the big three for the national level of credit reporting, we should know they aren’t the only ones with models of their own nor are they the only ones to develop scores based on your information to judge your credit worthiness for a particular lender or creditor.

You’ll find a list of other companies that can provide their own scores based on your information at the Consumer Financial Protection Bureau’s website.

These companies have often been utilized for potential landlords and utility companies to determine your rates.

While you can gain easier access to your credit scores from the national bureaus, you may not find all of the other agencies so accommodating. They do have to provide you with a report, free of charge, upon your denial of credit based on the FCRA if something on your report resulted in your denial.

They are required to give you have a credit report should you ask for one based on this law though you’ll most likely find they come with a fee. One thing you’ll find with these other sources is not all of them create reports for all of their applicants.

Credit Report Checks Recommended Each Year


Did you know that most Americans aren’t checking their credit reports? Somewhere near 65% haven’t seen their reports in some time.

You may be wondering what’s so important in monitoring your credit reports while others are probably shaking their heads in sympathy for these individuals. Monitoring your credit report is an important aspect all of us should be doing regularly.

Why Check Them At All?

You’ll want to check your credit reports for a number of reasons. The main one would be because if you’re wanting a loan for a home or vehicle or a new credit card, your credit report will be one of the most important factors. If you don’t know what’s on your report, then you won’t know why you’re being denied that loan or credit card.

Even if you have some idea of what’s on your report, you don’t know if there’s something that needs your immediate attention. You’ll want to know if someone has attempted to steal your identity or if there are any issues that you can improve before you seek that loan or credit card.

Whatever your reasons are for pulling your credit report, it’s a good idea that you do it because you want to know what’s on there and possibly learn more about your own spending habits and how you can improve them. If you’re wanting to improve your financial situation, you can follow these steps:

  1. Obtain copies of your credit from each credit reporting bureau.

With these copies, you can check your personal information, your payment history, the amount of credit you’ve used and how much you have total, the types of accounts you hold, how old your accounts are, and the number of hard inquiries you’ve acquired in the last few years. Since you’re entitled to free copies of your reports, you can obtain them from visiting for all three bureaus.

  1. Accuracy is key.

Based on all the information you can find laid out above, you’ll want to check off each one for their accuracy. If you can find where the inaccuracy has occurred, you can find a quick resolution when you challenge that information on your report. You want to do what you can to remove all red flags that could point to identity theft or you could find yourself with a battle that’s not the easiest to win.

  1. Create a budget to repair your finances.

The way you build your budget should start by sitting down with everyone that’s concerned about the finances of the household. You’ll want to discuss the money that’s coming in compared to what’s going out, trying to find a way to keep the in above the out, saving that amount for other needs. The goal is that the household embraces this budget and does what’s necessary to curb unnecessary spending while saving wherever possible to reverse the problems the household’s money is having.

Checking your credit report for inaccuracies and then using that information to create a budget can help you repair and improve your financial situation.

The knowledge you can gain from your report can help you know where  you save rather than spend, or if you need to spend, spend wisely.

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What is a good credit score to buy a home?

good credit score to buy a houseI get this question very often on my twitter.

In order to qualify for the top interest rates, a good credit score is a must!

How important are individual credit points and loan percentages?

Even a single credit point or percentage on a loan can be detrimental.

Consider the average borrower has a loan of around $200K at a 30year fixed rate of 5%.

Did you know this borrower would pay more than $186K in interest alone?

Now take the same borrower scenario above, and apply it to a 3% fixed rate.

This same borrower is now only projected to pay $103K in interest…

That’s a saving of more than 40%!

In addition to incredible savings long-term, a lower rate will significantly lower average monthly payments on the loan.

This is why it’s so important for homebuyers to know and restore their credit scores if necessary, prior to considering purchasing a home. A great credit score will keep more money in the pockets of the buyer.

Range of credit scores

Credit scores range from 800 being the best, to 300 being poor.

These are typically calculated using a 5–step process:

  • Payment History: This single point accounts for a whopping 35% of the consumers credit score. Paying your bills on time will result in higher scores.
  • Amount Owed: This like payment history accounts for a large percentage of the consumers score. 30% of the consumers credit score will be determined on how much available credit the consumer has used. Higher amounts used = lower score.
  • Credit Length of Time: this accounts for 15% of a consumer’s credit and directly reflects the length of time a consumer has had a credit line. The longer the relationship, the better the score.
  • New Lines of Credit: these accounts for 10% of the users score. When multiple accounts are constantly opened up, this will damage a consumer’s credit score.
  • Credit Types: 10% of a consumer’s credit score is affected directly by the type of credit accounts they choose to open. Some types that benefit this score are retail store cards, installment loans, and credit cards, etc.

All of these are taken into account when a lender is considering offering a mortgage or home loan to a borrower.

In our current market, consumers likely need credit scores of around 740 or above to obtain the best rates.

A calculated minimum for a conventional home loan is a score of 620. When loaning money out to scores of 600, a consumer can expect to pay more interest and higher rates than those with more beneficial scores.

The government entity Fanni Mae requires minimum scores of 620-660 before offering low-interest loans.

The Federal Housing Authority (FHA), another lender option, requires a minimum score of 580 prior to lending to a consumer.

In summary: a score of 740 is a target score to obtain for best results, lowest rates, and an all around more enjoyable home purchasing process.