How To Repair Your Credit in 90 Days or Less

If you’re looking to repair your credit, there are steps you can take today that will increase your credit score in just 90 days (sometimes sooner). Whether you’re looking to buy a house, get a lower interest rate credit card, or just want to improve your credit score, our guide to better credit can help you get there.

Why does my credit score matter?

Your credit score measures your ability to pay back money that has been lent to you by creditors. Every time you finance a purchase through a loan, or take out a credit card, your “line of credit” is the amount that is lent to you. Over time, as you pay off the loan or balance, your payment history is tracked. A higher credit score generally means that you have shown that you are responsible with the money being lent to you, and you have a good history of paying it back on time.

When you go to purchase a new car, take out a new credit card, or apply for a mortgage, the lender will look at your credit score as a way to determine if they are making a good investment by lending you money. If your credit score is considered “Poor” (Below 580) or “Fair” (580-669) you may have trouble obtaining the loan, or may end up with a higher interest rate. If that’s the case, you might want to hold off on the purchase until you are able to repair your credit and increase your credit score.

How Long Does It Take to Repair Your Credit Score?

It depends on where you are right now. Obviously if your credit score is in the low 500’s (or lower) it will take longer than if your credit score is in the 600’s. But regardless of where you stand today, there are steps you can take to start repairing your credit right away:

• Check your credit report. This is one of the most important first steps you can take. Obtaining a copy of your credit report is free once a year. By reviewing your credit report, you can identify areas that might be easy fixes, and check the information for validity.
• Dispute Incorrect Information. Your credit report may have outdated or incorrect information on it. If this is the case, you can dispute it with the credit bureau. Our Rapid Credit Repair Kit provides template letters for disputing incorrect information.
• Pay Off Your Smallest Balance First. Payment History and Credit Card Balances are the two highest ranking factors. The Ideal Credit Utilization is 30% of your balance. If you have a Credit Card with a low credit limit that is almost maxed out, consider paying off the balance first, as it will both give you good payment history, and help you get to a 30% utilization.
• Make more than the Minimum Payment on Credit Cards. I know this isn’t always something that can be done, especially if you’re on a tight budget. But in order to repair your credit, you need to chip away at the balances of your credit cards. Paying just the minimum payment every month means you’re likely just paying off interest. Try to make double the minimum payment every month and your balance will drop quickly.

Develop a Long Term Strategy to Repair Your Credit, and stick to it.

While it’s possible to increase your score within 30 days, you likely wont jump an entire credit rating. Your score may show improvement after just a month, and by the 90 day mark, you will be well on your way to enjoying a better score, however, developing a long term strategy will help you increase your score every month, and soon you’ll enjoy a new credit rating.

With increased credit ratings come new opportunities. Lenders will look at you in a new light. And you’ll be well on your way to new financial opportunities.