But getting there can take time if your credit history is limited or your credit report has blemishes.
This guide will show you how to break into the 700 credit score range.
7 Steps to Get a 700 Credit Score
1.
Pay Everything on Time
Yes, paying your bills on time is a painfully obvious first step.
But it bears repeating in any guide to improving your credit because its by far the most important.
Your payment history accounts for 35% of your credit score, making it the most importantcredit factor.
To build payment history, your payments must be reported to the credit bureaus.
Credit card, installment loan and mortgage payments are typically reported to the bureaus.
Its often difficult to qualify for credit if you have a bad credit score orno credit score.
As a result, you cant build a credit history, which can leave you feeling stuck.
Our team has compiled alist of creative waysyou can fatten your bank account this week.
This is a long list, so dont get overwhelmed.
Well keep it updated as offers changes or expire.
Asecured credit cardis a good fix.
You put down a deposit that becomes your line of credit.
Theres little risk to the bank, so its easy to get approved even if you have terrible credit.
Credit utilization is the second most important credit factor, accounting for 30% of your score.
Paying down car loans and student loans is great for your finances.
But reducing your loan balance wont decrease your credit utilization ratio.
That means you wont get the same credit-boosting effects that you would from lowering your credit card balances.
Dont Miss:6 Companies That Send People Money When Theyre Asked Nicely
4.
A limit increase can boost your score because it increases the amount of open credit you have.
Your credit utilization will drop as a result.
Of course, getting a limit increase will only lower your utilization if you dont increase your balance.
So commit to keeping your spending in check before you ask for more credit.
Keeping credit card accounts open that charges exorbitant fees may not be worth the credit score benefits.
But if the fees are low, keep your credit accounts open.
Applying for a new account also results in ahard inquiryto your credit report, which temporarily dings your score.
Free credit monitoring services that alert you to changes to your score are a good starting point.
Youre entitled to one free credit report per year from each of the three credit bureaus throughAnnualCreditReport.com.
double-check you recognize all the accounts and that the payment status and account balances are accurate.
If there are any errors, dispute the information directly with the credit bureaus.
Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder.
She writes the Dear Penny personal finance advice column.
Send your tricky money questions to[email protected].
No Interest Til Almost 2027?
Balance Transfer = Credit Card Cheat Code
