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If you want to build credit fast, you’re not alone. Many people want to know how to get a 700 credit score in 30 days; this article will provide that guidance. We’ll reveal the best way to build credit, explore ways to boost your credit score fast, and much more. Of course, building and maintaining good credit takes time. But, some strategies increase your credit score quickly, and, depending on your score, you can get to 700 within a month.
- 700 is solidly in the good credit range score of 670 to 739
- You can use several different strategies to give your credit a quick boost and work toward a 700 credit score
- Building and maintaining good credit is a long-term commitment
6 Ways to Get a 700 Credit Score in 30 Days
If you want to get a 700 credit score in 30 days, it can be done. It will take time and effort over the next month, but following these six strategies will help get you there.
1. Strategically Use Credit Cards
When used correctly and responsibly, credit cards are an excellent tool to build credit and raise your credit score to put you in the “good” credit score range, which includes a score of 700. Here are some helpful tips for using credit cards to your advantage.
- Apply for a secured credit card. This is a card that has a limit equal to the amount of money you deposit. For example, if you want $500 worth of credit on a secured card, you must first deposit $500 into the account. You can then use your card to card up to its $500 limit. This can be an excellent strategy for someone with poor credit who cannot be approved for a traditional credit card.
- Sign up for store credit cards. Certain stores allow you to sign up for their cards, even if you have poor or fair credit. They will often even give you a discount for signing up. It may tempt you to charge more at that store, but only buying what you need and watching their prices will ultimately be a credit booster.
- Become an authorized user. Ask a family member or friend with good credit to be added as an authorized user to one of their cards. They don’t need to let you use the card; just being added to the account can help raise your score.
- Request a credit limit on a card you already have. You will probably not have a problem doing this if you’ve been faithfully making your payments on time.
Using credit cards and following these strategies can have a very positive impact on your credit score. It can also help you to be approved for a personal loan (see the FinImpact review), student loan, or mortgage.
2. Watch Your Credit Utilization
Your credit utilization rate is the percentage of your credit limit you’re using. For example, if your credit limit is $5,000 and you’ve one-half of it ($2,500), your utilization rate is 50%.
- Hit the 30% target. Aim to keep your credit utilization at 30% or less. The lower, the better.
- Use your cards less often. Reducing your credit utilization rate can bump up your score.
- Pay down your cards. Paying down your balances will lower your utilization score, as will raising your credit limit without changing your spending. Doing both at the same time is even better.
Credit bureaus put a lot of weight on your utilization rate when calculating your credit score. Don’t take this strategy lightly.
3. Tackle Late Payments and Collections
Being late with payments or having accounts sent to a collection agency are credit killers. If you’ve fallen behind:
- Catch up. If possible, double up on your payments, and pay more than the minimum payment due. Get current as fast as you can, and your score will begin to increase.
- Don’t be an ostrich. Don’t bury your head in the sand if your account has been sent to collections. Instead, answer their calls and negotiate a better payment or cash settlement, but pay it.
- Be aware. Late payments can stay on your credit report for seven years.
- Ask for forgiveness. If you miss a payment for the first time, call and ask for late payment forgiveness.
- Write a goodwill letter. Write to your creditor and explain why your payment was late or will be late. This may keep them from dinging your credit report for late payment.
Being late or not paying are big negatives with credit scores. Be proactive before you fall behind and talk with your creditor. Most will be willing to work something out with you.
4. Make Every Payment Count
If you’re making a payment every month, make it count.
- Count everything. Experian Boost is a great way to get credit for accounts you pay on time every month, like your rent, Netflix, and utilities.
- A 13-point boost. According to Experian, this is the average boost that users experience by adding just non-rental data, which will help you on your quest to a 700 score.
5. Consider a Credit-Building Loan
Credit-building loans are a non-traditional type of loan that can help improve your credit score.
- You make payments first. With a credit-building loan, you get your money from the lender after you make your payments. Yes, it’s in reverse order compared to a traditional loan, where you get the money and then repay it, but it will help build your credit and favorably impact your credit rating.
- A good credit-builder. As the name implies, credit-building loans are great for people who don’t have a sufficient credit history to get loans or credit cards.
To the credit bureaus, an on-time payment is an on-time payment. Credit-builder loans help establish a track record of on-time payments.
6. Dispute errors on your credit report
“If you see something, say something” is good advice when it comes to your credit report, too.
- Speak up. You can dispute errors on your credit report with the three major credit bureaus: Equifax, Experian, and TransUnion. They will correct them.
- Mistakes happen. When people enter data into a credit report, mistakes are made. Someone else’s negative information may be put on your report, like someone who used to live at your address or someone with the same name. This is why it’s important to check your credit reports regularly.
Removing mistakes from your credit report can have a significant positive impact on your credit score. Report errors as soon as you see them.
Tips for Long-Term Credit Building
While attaining your credit score of 700 will be very satisfying, maintaining and even improving it will be even more so. While getting to 700 in 30 days is possible, a long-term commitment and healthy credit habits like these will help you continue climbing the credit ladder.
- Always make on-time payments. Consider setting up autopay and having your bills paid automatically every month on the same day. It’s great for people with busy schedules.
- Monitor your credit utilization. Keep it under 30%. People with scores over 800 average about a 7% credit utilization rate.
- Space out new applications. Applying for too many new accounts will hurt your score. Space new applications out and add different types of accounts to create a healthy credit mix.
- Keep your oldest accounts open. Leaving them open helps lengthen your credit history, which will help your score even if you no longer use the account.
What Does a 700 Credit Score Mean?
Unless your credit score is a perfect 850, there’s room for improvement. When you reach 700, you’re halfway to the next range, which is second from the top. These are the credit score rankings you need to be aware of to keep score of your progress:
- Poor: 300 to 579
- Fair: 580 to 669
- Good: 670 to 739
- Very Good: 740 to 799
- Exceptional: 800 to 850
How do Lenders Use Credit Scores?
As one credit card famously stated, “Membership has its privileges.” And having a credit score of 700 or better has its benefits.
- Better credit card terms. The higher your score, the better the perks you’ll receive, including lower interest rates and higher spending limits.
- Lower interest rates. With a good credit score or higher, not only will you get better interest rates and higher limits with credit cards, but the same goes for mortgages, car loans, and personal loans.
Where is Your Credit Now?
Good things take time, and that includes building your credit score. Expecting to jump from the poor credit range to excellent in 30 days isn’t realistic. How many people in your age group have a good credit score? According to Credit Karma, the breakdown of credit scores of 700 to 749 by generation looks like this:
- Gen Z: 21.1%
- Millennial: 17.1%
- Gen X: 16.9%
- Baby Boomer: 19%
- Silent: 15.6%
- Greatest: 14.7%
Building Credit from Scratch
If you’re just getting started building credit, it may not be as long a road as you think. Many people think it will take years, but that’s not the case.
- Give it six months. Six months is a short amount of time to build credit and begin to reap all of the benefits you’ll be enjoying for years to come.
- You have an advantage. If you want to get your credit score to 700 fast, it will be easier for you than it is for someone who has a damaged score and is trying to rebuild it.
Know what’s important. Knowing how credit scores are calculated will help you focus on the essentials from the beginning:
- Payment history: 35%
- Credit utilization: 30%
- Credit history length: 15%
- Credit mix: 10%
- New credit: 10%
“How long does it take to repair credit” is a common Google search for people who have damaged credit. A couple of key points to remember concerning this are:
- It varies by individual. The time needed to repair your credit depends on your unique financial situation. For example, a credit score lowered because of a repossession or bankruptcy will take longer to repair than one having a couple of late payments.
- It takes effort. Some steps you can take to be proactive in repairing your credit are:
- Pay down your balances
- Make sure your credit report is accurate and correct any errors
- Don’t apply for more credit until your existing accounts are current
- Ask creditors to remove derogatory information if you’ve taken care of the issue
It may take 30 days to reach 700, or it may take months. More serious credit issues can take years to resolve and result in improved credit.
Knowing how to get a 700 credit score in 30 days is important if you want to climb out of the fair range and work up to an exceptional score of 800 to 850. You can quickly boost your credit score by watching your credit utilization, tackling late payments and collections head-on, using a credit building loan, and taking out a secured credit card. How quickly you hit 700 will vary by individual.