Improving Your Credit Score in 90 Days: A Step-by-Step Guide

Improving your credit score can be a difficult and daunting task. But with the right strategy, you can significantly increase your credit score in just 90 days. This guide will provide a step-by-step process to help you achieve your financial goals. It will discuss the importance of on-time payments, low credit usage, and disputing errors on your report. With these easy-to-follow instructions, you will be well on your way to an improved credit score in no time.

Make Payments on Time

This may be one of the most significant ways to improve your credit score because it is the biggest factor in determining that score. Once late payments are on your report, they remain there for at least seven years. However, if you make a late payment, you can contact the creditor and ask them not to report it or remove it if it’s already been reported. While there’s no guarantee they’ll agree, if they do, it can improve your credit score significantly. 

Keep Credit Utilization Low

Maxed-out credit cards can hurt your credit score. Lenders want to know that you can manage your money well, and carrying high balances on all your credit cards tells them the opposite. Ideally, you want to keep your credit utilization at 30% or below. The lower you can get it, the better your score will be. When it comes to how to improve your credit score, other than on-time payments, this may be one of the biggest factors. 

Request Higher Credit Limits

Asking for higher credit limits may seem counterintuitive. When you ask for and are approved for a higher credit limit, you increase your available credit and decrease your credit utilization. This is a great way to lower your credit utilization if you can’t afford to pay off all your cards. The critical thing to remember is that if you want to improve your credit score, you cannot use the extra credit now available to you. 

Don’t Close Old Credit Accounts

If you have a lot of credit cards, you may be thinking of closing one or more accounts to improve your credit score. However, the age of your credit history impacts your credit score, so which card you close out can make a big difference. Closing older accounts decreases your overall credit history. If you feel you must get rid of a credit card, close out the newest account, as this will have the least impact. 

Become an Authorized User

Say your spouse, parent, or sibling has excellent credit and has never made a late payment. If they are willing to help you, you can benefit from those facts. Ask your loved one to add you as an authorized user on one or more of their accounts. You’ll get a boost from their high score and on-time payment history, and your loved one will not be impacted.

You do not need access to the card or the account number to benefit from this strategy. However, it is critical to choose wisely because, just as you benefit from their good decisions, you will also be negatively impacted by any poor decisions they make with that card once you’re an authorized user. 

Pay Credit Cards Strategically

If you typically pay your credit cards on their due date each month, you may set yourself up for a lower credit score. A strategic approach to paying your cards is another way to improve your credit score. Try paying your bill before the billing cycle ends each month. You can also make several payments on the same card throughout the month. The lower reported balances will give you a higher credit score. 

Dispute Errors on Your Credit Report

You’re entitled to a free copy of your credit report from each of the three credit bureaus (Equifax, TransUnion, and Experian) once per year. Take advantage of this to pull a copy once every four months and review it. If you find errors, such as late or missed payments that weren’t late, activity that isn’t yours, or damaging information that is too old to be listed on the report anymore, dispute it. The credit bureaus have 30 days to investigate and respond to your dispute. If the error is removed, you can quickly see a significant boost in your credit score. 

Get Rid of Collection Accounts

Like errors, collection accounts can lower your credit score significantly. If you find any on your credit report, dispute them to get them removed if they are not accurate or too old to be listed. If they are accurate, contact the collector to discuss paying them off in exchange for the collector removing it from your credit report and stopping reporting it. If you agree to pay a collection account, get it in writing from the debt collector that they will remove it and stop reporting it when you pay it off. You may need this if they fail to remove it promptly once you’ve paid the debt. 

Get a Personal Loan

More debt may not look like a step toward improving your credit score, but a personal loan can be when used correctly. Most credit cards carry high interest rates, while personal loans have lower rates. Using a personal loan to pay off higher-interest credit cards will save money and lower your debt-to-income ratio. You’ll also give yourself one lower payment each month instead of remembering various due dates for different credit cards. 

There are many ways to improve your credit score, but you want to focus on the ones that will have the most significant impact quickly if you want to see a change in 90 days or less. Each tip is easily implemented and should improve your credit score in three months or less. They’ll also show that you are moving in the right direction and encourage lenders to be willing to work with you.If you’ve already improved your credit score and are ready to get a mortgage or want to learn more, connect with a local independent mortgage broker in our nationwide Broker Directory today!