How to Boost Your Credit Score Fast

If you're in the market to buy a home, by now you know that having a good credit score is important. Often times I'm asked how can one boost their credit score so I decided to do a blog post about it.

Having good credit is very important when purchasing a home as it is a huge factor in not only the amount of money the bank is willing to loan you, but also plays a big part in your interest rate as well as the amount of down payment you'll be required to pay for your home. The lower your credit score, the more money the banks want as a down payment. With your score being below 620, you're considered a higher risk to default by the bank.

The average credit score is around 550, but you have the ability to boost your score and fast with the following tips:

Pay your credit card twice a month:

• Paying your credit card twice a month two weeks before the due date and before it reports to the credit bureau. This will not only help keep your balance down, but it will also show a really great pay history. Doing so sometimes will cause the credit card company to increase your limit and in essence lowering your utilization. It will also lower your interest on the remaining balance for your credit card.

Keep your utilization below 10%:

• Keeping your credit card utilization below 10% is ideal. This will definitely help increase your credit score and show the banks that you have responsible spending habits. Most people will day the target is 30%, but this isn't necessarily true. The goal is to not exceed 30% utilization on your credit cards as it can affect your credit score negatively.

Increase your credit line every 4-6 months:

• Increasing your credit line is a good idea for two reasons, one it will give you a higher limit and two it will allow for more utilization as well. The rule of thumb is to request a credit line increase after three to six full statements have come out. Request the maximum amount you can. Even if you don't get the full amount requested, chances are the bank will counteroffer you with a lower amount, but this still is an increase.

Be an authorized user:

• Being an authorized user is definitely another way to boost your credit score fast, but you must be careful about who you choose to be an authorized user under. Make sure this person is very responsible with their credit as well as keeps their utilization low as well otherwise it could affect your credit score negatively and we don't want that.

• Also, you don't have to have an actual card to be an authorized user. Just ask the person to add you to their account and watch your credit grow. I've actually tried this method myself and it shot my credit score up 56 points the first month.

These are just a few tips to help you get closer to a better credit score to secure a mortgage loan for your home. Peep the pic below for a breakdown of the steps mentioned above.

As always, happy house hunting. And don't forget to share. Sharing is caring!

Related Topics:

Home Buyer's Checklist

12 Steps to Buying a Home