Posted on May 21st, 2020 in Credit Repair
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.
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.
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:
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.