A 633 credit score is considered slightly below average and is categorized in the “fair credit score” group. Despite the fact that you are not in the poor score category, there is still so much room for growth, and you should take advantage of it. Think of your score as a stepping stone to bigger...
Most people go through a point in their lives where they need to repair their credit score. There are many tips and tricks to help you increase your credit score by 50 points or even raise it from a lower score. Because a credit score is basically a measurement of how likely you are to pay back loans, managing your credit score can help you qualify for loans, get lent with better interest rates, and obtain more credit cards with higher credit limits. With a lower score, the bank entrusts you less, leading to higher interest rates to compensate.
It is not easy to raise credit scores by 50 points, but it is most definitely doable. Your credit score is a snapshot of your financial health, and companies that are giving out loans want to make smart decisions for themselves. In order to get on their good side, you need to increase your score. It is vital to stay on top of your credit report to know what combination of patterns is working best for you out of all the different options. Throughout this article, we will discuss different ways to increase your score and how long this will take.
- How Long Will It Take to Increase Your Credit Score by 50 Points?
- 7 Steps to Raise Your Credit Score by 50 Points Fast
How Long Will It Take to Increase Your Credit Score by 50 Points?
The amount of time that it will take when raising a credit score by 50 points will vary depending on the state of your current credit accounts and credit utilization. Each person is different and has a different reason that they need their score boosted. Most people’s credit history is a mix of the following contributors:
- Credit utilization
- Payment history
- Credit mix
- Length of credit history
- New credit
These are the aspects that can affect your credit score. Consumers that are new to building a credit history or do not have much in their credit reports yet will have a much easier time boosting their score quickly. If your score is low due to a history of debt, this task may be more difficult for you. It is fixable, nonetheless. You simply need to get back on track.
Once you follow the proper steps to increase your score, you might notice that you have an increased credit score in 30 days. However, the normal amount of allotted time for scores to increase after you settle any late payments or disputes is typically about one to two months. For those that have more serious negative events take place on their report, their recovery time has the potential to be a lot longer. For example, a home foreclosure can take up to three years.
7 Steps to Raise Your Credit Score by 50 Points Fast
If you are wondering how to increase your credit score by 50 points, you have come to the right place. An Equifax or Transunion boost can help you score the loans you need for your future. While you are learning how to increase your credit score by 50 points, you first need to understand what exactly affects your score in the first place. The following factors are typically making up the average person’s credit report.
- Your bill-paying history
- Your current unpaid debt including unpaid credit card debt
- The number and type of loan accounts you have
- How long you have had your loan accounts open
- How much of your available credit you are using
- Any new applications for credit
- Whether you have had a debt sent to collection, a foreclosure, or a bankruptcy, and how long ago this occurred
Keep in mind that these factors have the ability to affect your credit score positively and negatively. If one of the factors on the list made your credit score drop 50 points, you can fix this by combating the same factor in the opposite direction. So, here are some of the best ways to raise credit scores.
Catch up on past-due payments and don’t miss any future payments
One of the most important factors that affect your credit score is your payment history. Missing payments can drastically decrease your score. Make sure you set reminders to pay your bills on time. You can also do this by setting up automatic payments.
Open new accounts
When you open new credit accounts, credit bureaus witness that you have multiple lines of credit. This makes you a more reliable, trustworthy source. This practice also gives you an increased amount of credit history, building up your credit in general. If you are new to the credit world and are wondering how to increase your FICO score by 50 points, this will certainly get you started.
Utilize less than 30% of your credit limit
This is surprisingly one of the least known facts about building your credit. Although this is not a rule, it actually helps you maintain a great score. The lower you are to your utilization limit, the more it can potentially help your score. Exceeding the 30 percent limit has the ability to negatively affect your credit score. It is better not to risk it and stay under 30%.
Limit how often you apply for new accounts
Although having a large number of open accounts is a good way to increase FICO scores, applying for new accounts often can be detrimental to your score. Make sure you are leaving a time gap when applying for new accounts. Every hard inquiry can decrease your score if it hasn’t had time to bounce back. These inquiries can affect your score for up to two years at a time, so be careful.
Disputing credit report errors
Many consumers do not frequently check their credit reports. This is extremely important because you should be able to identify any marks that were made without your consent. If you see an error, make sure you dispute it immediately so that your score can rightfully go back to where it should have been.
Make frequent payments on your cards
The most common way to make payments on credit cards is to pay every time a statement comes out (once a month). This is not bad. However, making frequent payments, often called micropayments, can help you keep your credit utilization low. This will benefit your score quickly because like we stated above, the lower your utilization rate – the better your score will react!
Ask for a higher credit limit
On the same pattern of low utilization, a higher credit limit will make your ordinary credit card utilization rate seem lower than it normally is. All you need to do is call your credit card company. If you are in good standing with the company, they typically will not have any issues increasing your limit. Make sure you ask if they are able to do this without a hard credit inquiry to prevent your score from decreasing at all. Most companies will happily work with you on this matter.
We hope these tips to raise your credit score will be successful for you. As long as you understand how your credit accounts work, you could potentially raise your credit score by 50 points in 30 days! If you are still struggling with your score, consider using one of the credit repair companies such as Credit Saint or Lexington Law. The higher you can get your score, the easier you will be able to get loans, low-interest rates, and extend your credit limit. Your financial life will become more accessible and painless. Once you reach your desirable credit score, do not forget to maintain it! Many consumers fall back into lower scores because they forget to keep up with their daily patterns.