Do you want to know how to get a 700 credit score in 90 days?
A 700 credit score is the goal for most people. It’s not easy to achieve, but it’s possible if you follow our tips. We can help you every step of the way so that you can improve your credit score and get on the path to financial success.
A 700 credit score means that you’re considered a lower-risk borrower. This puts you in a much better position when it comes time to borrow money for a car or a home. In addition, you could save thousands of dollars in interest payments over the life of your loan. Wouldn’t that be nice?
Keep reading to learn about our tips and improve your credit score today.
The Importance of Credit
Your credit score is a number that lenders use to determine how risky it is to lend you money. The higher your score, the lower the risk and the better the interest rate you’ll qualify for. A low credit score means you’re a high-risk borrower and will likely pay more interest.
Your credit score is essential because it’s used in many different financial situations. For example, if you want to buy a car, the lender will check your score to see if you qualify for a loan and at what interest rate. You may not qualify for a loan if you have a low score. Or, you may have to put down a larger down payment or get a cosigner.
The same is true for a mortgage. If you have a low credit score, you’ll likely pay more in interest over the life of the loan. This can add up to thousands of dollars. A higher credit score could save you a lot of money.
Your credit score is also used when you apply for a credit card. If you have a low score, you may only qualify for a card with a high-interest rate and annual fee. Or, you may not qualify for a card at all. A higher credit score will give you more options and help you save money.
Understanding the Credit Score Range
The most popular credit scoring system is FICO. Most lenders use your FICO credit score when determining whether or not to give you credit. FICO scores range from 350-850, with five distinct categories of credit health.
Poor 350-580: If your score falls in this range, you’re considered a credit risk and will likely be charged a higher interest rate when applying for new financing. You’ll often be turned down for credit cards, loans, and lines of credit. Typically, you will have had numerous delinquencies and/or past due accounts and a history of bankruptcy.
Fair 580-669: Your credit is considered fair if you have a score in this range. You may still be charged higher interest rates than someone with good credit, but you will likely be approved for most financing. A score in the lower end of this range may indicate that you have had some late payments or other negative information on your credit report.
Good 670-739: This is considered a good credit score. You’ll probably be approved for most financing and will qualify for the best interest rates. However, if you have a score in the lower end of this range, there may be room for improvement.
Very Good 740-799: A score in this range is considered very good. You’ll likely be approved for all financing and will qualify for the best interest rates. If you have a score in the lower end of this range, there may be room for improvement.
Exceptional 800-850: A score in this range is considered exceptional. You’ll likely be approved for all financing and will qualify for the best interest rates. If you have a score in the lower end of this range, there may be room for improvement.
Credit Score Factors
Ever wonder how your scores are calculated? 5 key factors affect your credit scores, and while they are all important, they are weighted differently, which plays a big decision in how your credit score fluctuates.
Payment History (35%): This factor determines whether you’ve made your past payments on time and if you have any delinquent accounts or collection account. It’s the most important factor in your credit score, so it’s essential to make sure you always pay your bills on time.
Credit Utilization Rate (30%): This factor determines how much of your available credit you use. It’s important to keep your credit utilization low, ideally below 30%.
Credit History (15%): This factor looks at the length of your credit history. The longer you have a good payment history, the better it is for your score.
Credit Mix (10%): This factor looks at the different types of credit you have, such as revolving credit (like a credit card account) and installment loans (like auto loans). Having a mix of both is good for your score.
New Credit (10%): This factor determines how often you apply for new credit. Applying for too many credit accounts in a short period of time can hurt your score as a hard inquiry will lower your score.
10 Tips to Improve your Credit Score in 90 Days
1. Check Your Credit Report
The first step to improving your credit score is to check your credit report for errors. Every year, you’re entitled to one free credit report from each of the three major credit bureaus —Experian, Equifax, and TransUnion. You can request your report online at AnnualCreditReport.com.
2. Track Your Spending
Tracking all of your spending is also important but should be done in conjunction with checking over your credit report so that you can get an accurate assessment of your credit situation.
If you have high balances on any one account, it might be a good idea to pay down the balance and keep it low until you’re able to improve that account’s credit score. This will help lower your credit utilization ratio if that number is too high.
3. Dispute Inaccurate Information on Your Credit Report
If you find any errors on your credit report, you should dispute them as soon as possible. You can do this by writing a letter to the credit bureau reporting the error and including documentation proving the information is incorrect.
The credit bureau will then investigate the dispute and remove any incorrect information from your credit report.
4. Pay Your Bills on Time
One of the most important factors in your credit score is your payment history, so it’s important to always pay your bills by the due date. Set up automatic payments if you can so you don’t have to worry about forgetting your monthly payments. This can be done with many car and student loans as well as credit card purchases.
5. Fix Past Due or Collection Accounts
If you have any past due or collection accounts, you should focus on fixing those first. Past due accounts will show up on your credit report and can damage your credit score, so it’s important to get them current as soon as possible.
You can usually negotiate with creditors to remove a past due account from your credit report if you bring the account current.
6. Keep Your Credit Utilization Low
Your credit utilization ratio is the amount of debt you have compared to your available credit. It’s a good idea to keep your credit utilization below 30%, so you don’t appear to be maxing out your credit cards. Paying more than the minimum credit card payment will help with this.
If your credit utilization is too high, you can try to get a credit limit increase from your credit card issuer. You can also transfer some of your balances to other credit cards or take out a personal loan to pay down your debt.
7. Don’t Close Unused Credit Cards
It might seem like a good idea to close any unused credit cards, but that can actually hurt your credit score. That’s because closing an account will shorten your average credit history, which is a factor in your credit score.
It might be worth closing the account if you have an unused credit card with a high annual fee. But if you have a good payment history with the card and it doesn’t have a high annual fee, you might want to keep it open and active.
8. Have the Right Credit Mix
Your credit mix makes up 10% of your credit score, so it’s not the most important factor. But having a good mix of different types of credit can help improve your score.
If you only have revolving credit (like credit cards), try to get an installment loan (like a personal loan or car loan). And if you only have one type of credit, try to get another type so you can diversify your credit mix.
9. Get a Secured Card
If you have bad credit, you might not be able to get a traditional credit card. But you can usually get a secured credit card if you have a deposit equal to the credit limit.
A secured credit card works like a regular credit card but requires a security deposit. The deposit is held as collateral in case you default on your payments.
Using a secured credit card can help you build up your credit history and improve your credit score. Just make sure to use it wisely and keep your balance low, so you don’t hurt your credit score.
OpenSky Secured Visa Credit Card is one option you might consider. It has no credit check required and doesn’t require a minimum credit score.
10. Consider Hiring a Credit Repair Service
If you’re not sure how to fix your credit on your own, you might want to consider hiring a credit repair service. This may be a great option as these services can help you dispute inaccuracies on your credit report, negotiate with creditors, and set up payment plans.
Just be aware that there are a lot of scams out there, so you should only use a reputable credit repair service.
Credit Saint and Sky Blue Credit Repair
Credit Saint is a credit repair company that has been in business since 2004. They have an A+ rating with the Better Business Bureau and have helped remove charge-offs and other negative items from people’s credit reports.
Credit Saint offers various services to help you fix the most derogatory marks on your credit reports, such as late payments, charge-offs, and other services.
Credit Saint can help you with credit counseling, credit monitoring, and identity theft protection.
Credit Saint has a high customer satisfaction rate and offers a money-back guarantee on all their services.
Sky Blue Credit Repair is another credit repair company that has been in business since 1989. They have an A+ rating by the Better Business Bureau and have high customer satisfaction.
Just like Credit Saint, Sky Blue Credit Repair can help you remove a charge-off along with any other delinquent account from your credit report. They also offer a money-back satisfaction guarantee on all of their services.
Both Credit Saint and Sky Blue Credit are reputable credit repair companies with a long history of helping people repair their credit. If you’re struggling to remove a charge-off from your credit report, hiring one of these professionals may be the best step for you.
Wrapping it Up
If you’re looking to improve your credit score, you can do a few things.
You can get a secured credit card, open an account with a credit repair service, or try some of the tips we’ve provided.
No one can guarantee a 700 credit score in 90 days. The good news is by following these tips, you’ll be well on your way to improving your score. Just remember to be patient and stay disciplined with your spending. It may take some time, but eventually, you’ll will start seeing a high credit score.