3 Ways To Boost Your Credit Score Fast !

When it comes to increasing your credit score, everyone is looking for the most simple and fastest way to get their score higher.  Now while most strategies provided are really slow or worst yet don’t work this article is different. 

This article actually provides you 3 ways to boost your credit score fast that anyone could apply starting today.

#1 Become an authorized user

Becoming an authorized user is the fastest way to improve your credit score.  Not only is this method quick to implement, it does not require any effort on your part. 

Perhaps I should rephrase that, it does require you to have built up a trust with someone who cares about you.  You see for this to work you must have a strong rapport with someone who manages his or her credit very well.

You are going to ask this very special person to perform a huge favor for you.  The favor is a large one. You are going to request to be added to their account.  

Now there first reaction may be a strong no. Your job is to stress to them that you have no intention of using their credit card. However you will needed to be added as a authorized user in order to improve your score.

You see, when you’re an authorized user, the account will show up on your credit report. Then, your credit report will reflect the primary cardholder’s on-time payments and (hopefully great) credit utilization rate. As a result, your credit score gets a boost, too.

This strategy is by far the fastest is because it requires no action on your part.  Although the results will not be seen overnight, you will see the changes affect your credit score positively in a matter of months.

# 2 Pay Twice A Month On Your Credit Cards

Now this strategy is rarely considered. 

Why?

Because psychologically you may think you are doing great because you are paying off your card every month, even if it is maxed out.

The real problem with this is, is the credit card companies report balances to the credit reporting agencies only once a month. So when you run up a big balance each month it tends to look like you are overusing your credit.

Examples always work best so let’s assume you have a credit card with a $2,000.00 dollar limit. 

Let’s also assume it is a rewards card, so you use it for everything to reap the maximum benefit. For added measure lets also state you hit your limit every month. 

Your statement arrives, and you owe $2,000.00 dollars, no problem you pay it off.  But here is the kicker, depending on what point in the month the credit card company reports your statement balance it will look like you have a $2,000.00 limit and a $2,000.00 balance every month.  That’s a 100% credit utilization rate.

So what’s the solution? 

Break up your cred card payments.  You can still charge everything to get the rewards, but send in payments at least twice a month.  This will allow you to appear your keeping running balance lower. 

In addition when you make a large purchase on your card and have the cash available, pay it off immediately.

It will shock you how fast your credit score gets boosted by just adding one additional payment.

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#3 Pay Down Your balances And Limit Usage

Now this tactic seems rather obvious. But let me give you the mechanics of why you should implement this immediately. 

The Fair Isaac Corp also known as FICO is one of the most widely used credit scores.  Ok you probably were aware of that piece of information but bear with me as I make a point. 

30% of your FICO scored is based on the amount you owe.  But it is not just how much you owe that’s important; it is also how you owe compared to how much credit you have.  The ratio between the two is known as your credit utilization rate and it is vitally important.

Concepts are always clearer when you are given an example.

So hears one:

Let’s say you have a $20,000 credit limit and have a balance of $10,000 dollars, your credit utilization is 50%.  Now lets say you’ve maxed out that $20,000 limit, you will now find yourself at a utilization rate of 100%.

Here is when things move past theory and move to facts.  Experian one of the 3 credit bureau agencies states its best to have a rate of less than 30% to put your credit score in the best standing.  In fact this should be your standard measure on all your credit cards. 

Not easy right? Especially during this Pandemic of Covid 19 we now find ourselves living in.  Never the less this is something you should strive to do.

So if we go back to our trusty example you should never have more than $6,000 dollars charged at any time if you have a $20,000 limit.

If your credit utilization rate is high, paying down your balances is a quick way to lower that rate and thus boost your score.  Once done you need to limit the usage in order for it to stay at that rate.

So there you have it, assuming you follow these 3 ways to the letter you should be able to boost your credit score quickly.