Improving your credit score is a long-term process, but it is possible to make significant progress in a month. To get a credit score of 700 or higher, you need to pay your bills on time, avoid taking on new debts frequently, and consider the types of credit you use. Depending on your credit history, it is possible to improve your credit score by 100 to 150 points in 90 days. If you have just come out of bankruptcy and your score is 450, it will take much longer.
The amount of time it takes to go from a credit score of 700 to 800 can vary from a few months to several years. Your financial habits and credit history will influence how long it takes, but there are some factors that have specific deadlines. For example, a thorough consultation takes up to two years to disappear from your credit report. As difficult queries are eliminated, your score may rise.
Your score also increases the longer you have had credit. Every year you have your credit, your credit history gets longer, helping to improve your score. It is tempting to close credit cards after they have been paid, but leaving them open can increase your credit score. This is because the way you manage current lines of credit is more interesting to creditors than the way you handled previous lines of credit.
Recently closed accounts will continue to influence your score, but open accounts will have more weight. The age of your credit history represents 15 percent of your total FICO score and when combined with your credit mix, it represents 21 percent of your VantageScore score. Newly opened credit determines 10 percent of your FICO credit score and approximately 5 percent of your VantageScore credit score. Opening multiple credit accounts too quickly increases risk, especially for people with a short credit history.
In addition, rejected applications may appear in the report, which may cause a decline in the credit rating. When you need to open a new line of credit, compare rates from different lenders. When you apply for a loan, the lender will check your credit in what is known as a “hard consultation”. This type of query can cause a drop in your credit rating. However, similar inquiries made in a short time will have minimal impact on your credit rating.
So if you plan to apply with multiple lenders, try to do so within a limited period of time. In the latest FICO rating model, that period is 45 days and for VantageScore, the period is 14 days. If your credit score fell more than 100 points as a result of adding certain negative records to your credit report, you estimate that deleting that information could cause an increase of more than 100 points. Reducing your credit utilization is one of the easiest ways to improve your credit score within a month. Adding new business lines to your credit report can increase your credit, especially if you're new to the credit game. This system virtually eliminates the risk of default, so lenders are willing to offer these loans to borrowers with bad or no credit.
If you have a trusted family member with a good credit score, you have an opportunity to dramatically increase your credit score. Even if your credit score increases 100 points overnight, you won't find out for a while with most free credit rating sites which are updated weekly, monthly or quarterly. Secured credit cards are backed by a cash deposit so even borrowers with low ratings can get one. Knowing how to get a 700 or 800-credit score and taking the necessary steps to do so can give you access to better cards and allow you to borrow money at lower interest rates and better lending terms.