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If your credit score is too low to qualify for a home mortgage learn how to raise your credit score fast. This post shows you how.

Every loan approval depends on your credit score. Whether you apply for a home loan or a loan to buy a car or even to get a credit card with a decent monthly balance your lender first looks at your credit score.

What is a Credit Score?

A credit score is a number determining a person’s creditworthiness. A low credit score begins with 300 and works its way up to the highest at 850. Lenders examine your credit score number before deciding to give you a loan. The higher the score the better your chances are to get loan approval.

Your credit score is determined by your:

  • Credit history;
  • The total level of debts;
  • Number of open credit accounts; and
  • Repayment history.

Credit scores give lenders an indication of the probability that you will timely repay the loan.

A credit score of 700 or higher is considered a good repayment risk allowing for a lower interest rate. A score of 800 or more is considered excellent. The standard credit score used by most banks and private lenders is the FICO. The FICO score range is:

  • 800 to 850 is Excellent;
  • 740 to 799 is Very Good;
  • 670 to 739 is Good;
  • 580 to 669 is Fair; and
  • 300 to 579 is Poor.

However, while the FICO score considers 670 as good, most lenders want to see at least a 700 score.

According to Mortgage Reports, “a 700 credit score is high enough for most mortgages”. That’s because FICO states that a 700 score “is above the average of U.S. consumers accepted for a mortgage loan”.

How To Raise Your Credit Score Fast

If you are not satisfied with your credit score read about how to raise your credit score fast. These suggestions help you to raise your credit score, especially if it’s under 700.

1. Let Experian Help You

Experian is one of the top three credit reporting companies. They have an exclusive Free program to help you raise your credit scores called Experian Boost™.

Experian Boost lets you get credit for bills you pay like your utilities, phone, and popular streaming services. This includes streaming services like:

  • Disney+;
  • HBO;
  • Hulu; and
  • Netflix.

 Every time you make your monthly payment to your utility company, phone company, and any of the listed popular streaming services it will go into your credit history. Each payment will help raise your credit score. Experian also includes your past payments too which helps raise your credit score instantly.

They claim to assist millions of Americans with raising their credit scores. As Experian explains it: “Unlike credit repair companies, Experian Boost is completely free and can increase your credit scores fast”.

Here is how it works. Create your free account with Experian. You link your bank account that pays your cellular and landline phones, streaming, and utility bills. Experian looks at our credit history to find any of these bills not already credited to your payment history and adds them. All this information remains encrypted and private.

Tip: You can download your free FICO Score on this site to see what your credit score is. Then, click one of their “Start Your Boost” buttons to quickly begin your boost.

2. Overwhelmed with Credit Card Bills?

Paying down your credit card balances not only avoids high interest rates but also improves your credit score. Paying down your student loans and car loans helps financially. However, they don’t help with raising your credit score as paying down your credit card balances do.

That’s because of your credit utilization ratio which is the percentage of a borrower’s total available credit currently used. Using too high a percentage lowers your credit score. Car and student loans don’t involve revolving credit. In fact, 30% of your credit score is the credit utilization ratio.

Here is a website that helps you pay off all your credit card balances immediately. No more crazy credit card interest rates on unpaid balances. When your credit card balances get paid your credit score rises.

Fiona matches you with personal loan options. This is done for Free as Fiona gets a referral fee if you get a loan from one of the companies.

Fiona looks at your credit history and finds you loans where you prequalify. You can obtain a loan anywhere from $1,000 to $100,000 with payments over 24 to 84 months. Interest rates start at 4.99% and up. You view the lenders and their offers and decide which ones to apply for a loan.

Besides debt consolidation to improve your credit score, you get a loan to pay for home improvements, medical emergencies, and any other personal needs.

Have questions?

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3. Get a Credit Limit Increase

Ask your credit card issuer to increase your credit limit. Increasing your limit lowers your credit utilization ratio which boosts your credit score immediately. That’s because your percentage of used credit becomes lower.

Paying your higher limit credit card promptly increases your credit score. 

4. Contact Your Creditors

Unless you have too many unpaid creditors, writing a letter to a few of them explaining your unique problem can get you back in their good graces. Your goodwill letter may improve your credit score. Here is what you need to write:

  • Explain how long you’ve been a loyal customer;
  • Own up to your mistakes leading to the blemishes with them in your credit history;
  • Explain what steps you will take to ensure these mistakes never happen again;
  • Ask for their forgiveness and how you are determined never to make these mistakes again; and
  • Make your letter clear and to the point.

Also, make sure to include your full name, account number, and the dates and amounts you missed paying that you want to be removed from your credit history.

5. Get a Secured Credit Card if You Don’t Qualify for Credit

People with low credit scores can’t get credit cards. Yet, paying credit card balances on time quickly raises your credit score. Here is what you can do.

Get a secured credit card. Investopedia describes a secured debit card as a credit card supported with a cash deposit from the cardholder. The deposit is collateral for the account and is used when the cardholder fails to make payments.

Just like a standard credit card, all payments are reported to credit bureaus and included in your credit history. Your balance is always paid promptly which raises your credit score.

Most secured credit cards start with $200 and can go as high as $2,000 depending on your deposit.

How To Raise Your Credit Score Fast – Conclusion

You just learned five ways how to raise your credit score fast. To summarize:

  1. Get Experian Boost to include past and future phone, utilities, and streaming services payment in your credit history;
  2. Get a loan to instantly pay off your credit card balances;
  3. Increase your credit card limit and always pay on time;
  4. Contact your creditors to ask for credit history mistakes to delete from your credit history; and
  5. Get a secured credit card to build your good credit history.

Once You Raise Your Credit Score to 700+ Buy A Home

With a credit score of 700+, you can qualify for most home mortgages at lower interest rates. This makes it the perfect time to let us help you find your new home in the greater San Diego area.

Big Block Realty offers you more than 985 Realtors throughout San Diego County. We are one of the largest real estate brokerages in California because of so many Realtors like working with us.

Contact us so we can match you with an experienced Realtor who can list our current home for sale and help you find the ideal replacement home anywhere in San Diego County.

If you are a first-time homebuyer, our Realtors can help you find the dream home you always wanted. We can also introduce you to real estate professionals who can help you like a mortgage broker or lender.

Steven Rich, MBA – Guest Blogger

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