Homeowners who raised their credit score fast.

Raise Your Credit Score Fast

There are three ways you can raise your credit score fast to get a lower mortgage rate.

The first two ways aim to address consumers who might not have traditional credit (e.g., credit cards, car loans, etc.) to show their creditworthiness. Additionally, these programs will help those who might have missed some payments on credit cards but who otherwise have paid all their bills on time. Both programs can raise your credit score fast, sometimes thirty to fifty points higher.

The third way to raise your credit score fast is to correct any significant errors on your credit report within 48 to 72 hours. The rapid rescore program is an excellent fit for those who can prove the negative item being reported is an error. The increase in your score post-rescore might be significant and lead to a lower mortgage rate.

Anyone who has tried to buy a home or refinance a mortgage will tell you that your credit score and history are critical to the mortgage process and key to getting a lower mortgage rate.

Benefits of raising your credit score

Here are the benefits of raising your credit score when applying for a mortgage.

  • More options
  • Easier process
  • Lower mortgage rate

The benefits of raising your credit score are clear. You will have more options to consider if you have a good credit score. Getting your application approved by an underwriter will be easier, and you’ll get a lower mortgage rate.

Do You have a question or need a quote?

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Three ways you can raise your credit score fast

You can raise your credit score fast to get a lower mortgage rate in three main ways.

Experian Credit Score Boost

Experian is one of the three major credit bureaus (the other two are TransUnion and Equifax).

It’s well known that your credit score from the three major credit bureaus is based on your payment history with your credit cards, car loans, mortgages, etc. Things like utilities, internet, and cable bills you pay monthly are not a factor until now.

This new program, designed to raise your credit score fast, is called Experian Boost and has worked for thousands of people. All you need to do is give Experian the okay to add your monthly utilities, internet, and cable bills to your credit report and your way to raising your credit score fast1.

This program is a great way to start establishing your creditworthiness, and for those who need a little help, it can raise your credit fast to help you get a lower mortgage rate. The program is quick and painless, so if it’s a good match for you, I suggest you try it (provided you’ve paid your utility, internet, and cable bills on time each month).

UltraFICO Credit Score Boost

This program is similar to Experian Boost; the difference with the UltraFICO program is the borrower links their checking and/or savings account to their credit profile2, thus adding another way you can raise your credit score fast to get a lower mortgage rate.

This allows the scoring models to see that you’re paying your bills on time and properly managing your checking/savings account.

According to a Consumer Financial Protection Bureau study, 26 million Americans lack a credit score and are “credit invisible.”3 The UltraFico program can raise your credit score fast so that you can get a lower mortgage rate. Before signing up for the program, please ensure your checking and savings accounts have a clean history without any derogatory items.

Rapid Rescoring

Rapid rescoring is the third way you can raise your credit score fast so you can get a lower mortgage rate. Here are the details on rapid recording.

What is a rapid rescore, and how can it get you a better mortgage rate? A rapid rescore is a process in which your mortgage company can remove errors on your credit report so that your credit score goes higher, and you qualify for a better mortgage rate.

Source

Rapid rescoring requires you to have an application on file with a mortgage company. If you have an error that needs to be fixed, you’ll need to provide your loan officer with a letter from the creditor clearly stating the negative report for the account was done in error. Here is the additional information the letter needs;

  • The letter must be on company letterhead.
  • Your name, address, and account number must be included.
  • The person completing the letter needs to provide their name and full contact information for verification.

If your letter does not have all of the required information, you will not be able to do a rapid rescore.

Once your loan officer has the letter, they can then file that along with a request to remove the error to the credit provider they use. The credit provider will then send it to the credit bureau for review, and the credit bureaus will respond with an update within 24-72 hours.

Important credit scores for a lower rate

Aim for one of these credit scores when trying to raise your credit score fast.

  • Credit Score: 720+
  • Credit Score: 680+
  • Credit Score: 620+
  • Credit Score: 600+

These are the important credit score levels for people trying to raise their credit scores fast. At each level, you might see an improvement in the mortgage rate offered and/or your closing costs (depending on the lender and the chosen loan program).

Why this matters to homeowners and homebuyers

These three programs to raise credit scores fast are a game-changer for those looking to purchase a home or refinance their current mortgage.

This will allow first-time homebuyers to improve their credit score; the savings between a 600 and 720+ credit score are significant over the life of the loan since a higher credit score usually equals a lower mortgage rate.

Even if your score only increases ten to twenty points, that still could save a homeowner a significant amount of money. It could also mean the difference between a 10% down payment or a 3.5% down payment or no-down payment.

Advanced tips to raise your credit score

Here are some additional steps you can take to raise your credit score over the long-term. It’s great to have the Experian Boost, Ultra FICO, and the Rapid Rescore program, but over the long run, you will need some additional tools to ensure your credit score continues to move higher.

  • Utilize Authorized User status for credit score improvement
  • The number one thing is to pay your bills on time.
  • Keep your credit card debt 30% below the credit limit.4
  • Obtain a car loan, and pay it off early if you can.
  • Avoid too many credit card inquiries over a two-year period.
  • Avoid any derogatory accounts like medical collections.
  • Actively use two to four cards.

Following these steps might lead you to an excellent, top-tier credit score.

When it comes to refinancing a mortgage or purchasing a home, you only need a 780 or higher middle credit score for the best rates on Conforming loans. And in some cases you may only need a 720 credit score or higher.

One of the key things in this list is actively using your credit cards. Some people make the mistake of never using their credit cards, and when they see their credit score, they are very surprised.

The credit bureaus can only judge your credit history if you use the credit available to you. Even if it’s only $100 a month, do that to establish you can pay your credit cards on time. Remember, a great credit score is built on showing you can manage credit AND debt without issue.

Long-term credit score maintenance

Having a long-term credit score maintenance plan is a good idea if you’re trying to raise your credit score fast. The plan can be simple and used as a guide or roadmap to keeping your credit score at a higher level.

  • Write down your long-term credit score goals.
  • Talk with a credit expert who can advise you on what steps to take.
  • Set up a plan of action to follow, and review the plan each month.

Establishing a long-term credit score maintenance program is a wise financial decision that might pay huge benefits.

Do You have a question or need a quote?

Contact Kevin

Low rates, fast closings, and exceptional service.

Bottom line on raising your credit score fast

Everyone wants the lowest mortgage rate they can get. Raising your credit score fast is the best way to help you achieve your goal. There are three main ways to help you raise your credit score fast so that you can get a lower mortgage rate. Experian Boost and UltraFICO are quick and easy ways you can improve your credit score.

If you have an error on your credit report, work with your loan officer on a rapid rescore. Once you’ve completed the process of raising your credit score, you should implement a long-term credit score maintenance program to ensure the possible mortgage rate on your next transaction.

Citation Sources:

  1. Experian.com: Instantly Raise Your Credit Score For Free
  2. FICO.com: UltraFico The Open Banking Score
  3. CFPB.org: CFPB Report Finds 26 Million Consumers Are Credit Invisible
  4. CreditKarma: How much of your credit should you use?
Loan Officer Kevin O'Connor

About The Author

Loan Officer Kevin O'Connor has over 17 years of experience as a Mortgage Loan Originator and is a trusted resource for mortgage education and information. He's licensed by the state of California and the Nationwide Mortgage Licensing System. He has a top rating with the Better Business Bureau, Google, Yelp, and Zillow. You can contact him at 1-800-550-5538. CA DRE #01499872 / NMLS #247447