3 Secrets to Rapid Credit Score Increase
Quickly! Hurry! Let’s go!
Sometimes in life, you have plenty of time to get your financial house in order, with painstaking and diligent planning, strategizing, and long term execution. That works best whether we want to save an emergency fund, pay off all of our credit cards, or plan for retirement.
In fact, even the process of improving your credit score is most effective when we plan ahead and start working over the course of a year, nine, or even six months.
While all of that is well and good, we both know that life doesn’t always work that way. Instead, there are twists and turns, pressing issues, and circumstances that cause us to rush around like a whirlwind a lot more than slow and patient like an oak.
It doesn’t mean it has to be all bad when we’re forced to rush into action to improve our credit score. Maybe we deem it’s finally time to buy our own house, we’re faced with a golden business opportunity that won’t wait, or we’re up for a dream job that requires a credit check.
So, although it’s not ideal that you have to improve your credit score in short-order, there are some tricks and hacks we can employ to give your FICO a quick boost.
1. Become an authorized user on someone else’s credit.
If you want to see some serious credit score magic in a matter of weeks or even days, not months or years, then try this hack. All you have to do is get someone to agree to register you as an authorized user on their credit card or other account that reports with the credit bureau. By doing so, this account will start showing up on your credit, too, and your score will jump up accordingly.
However, remember that you should only do this with an account with a low balance (not maxed out) and has an impeccable payment record. Furthermore, if the borrower misses a payment, your score will go in the tubes, too, so be careful who you trust with this hack!
2. Improve your credit utilization rate.
Your utilization rate – or the ratio of your current debt balances compared to your total available credit – constitutes 30 percent of your credit score. It’s also one of the simplest ways to improve your score quickly since you can change it.
There are two ways to improve your credit utilization rate virtually overnight, sending your score skyward (a bonus for you!):
-Pay down your debt balances.
Take out your credit card statements and start paying them down. While you may read that 30 percent is a good target for your total debt to available credit, studies show that a 10 percent credit utilization rate is ideal. Either way, pay down your accounts (but don’t pay them to zero and definitely don’t close them!), and you’ll see your score go up accordingly.
-Ask for a credit line increase.
Paying down your balances is terrific if you have plenty of spare cash sitting around, but that’s often not the case in the real world where it feels like we always have more month than money. But there’s another smart way you can increase your credit utilization without paying down your balances even one cent; improve your total available credit. To do this, simply call up your credit card companies or bank and ask for a credit line increase. They may ask you why you are requesting it or ask for some other simple financial information, but it’s not a formal re-application, and the worst they can say is “no.” But if and when they allow to bump up your available credit, your utilization will automatically reflect that – and your score will go up!
3. Pay for deletion of collections.
These days, many of us have debts, bills, and accounts that have gone to collections. Unfortunately, it’s just a part of life, with old phone bills, medical debt, and even credit cards we forgot to pay going to collections after 90 days or so. But when an account is listed in collections on your credit report, it can also hurt your score on an ongoing basis.
However, the tricky thing is that if you just pay off that account in collections (even if you had the means to do so), it could still drop your credit score lower since it will effective re-report to the bureaus! It’s a Catch-22!
Not so fast, as there’s another very effective way to improve your score post haste; contact those collections companies and negotiate a pay-for-deletion with them. Essentially, what you’re doing is agreeing to send in the amount you owe (but you can also try to negotiate a lower settlement) at once, but only in exchange for the promise (in writing) that they then delete the item from your credit report (by not reporting it to the bureaus anymore).
We’ve listed three (ok, four!) great secrets to repair your credit fast and increase your credit score, but we have a bonus tip worth mentioning. With these tactics or others, you may want to undergo a Rapid Rescore after making positive changes, so the credit bureaus will receive this new beneficial information ASAP, not in a few weeks or at the end of the month during their regular credit reporting cycle.
Contact Blue Water Credit if you have any questions about these hacks for a fast credit score increase, a rapid rescore, or any other credit help!