Your credit score is a number between 300 and 850 that helps lenders decide how much of a credit risk you are. While some actions can raise your credit score in under a month, other steps may take a year or more to go into effect.
Options
Many different actions on your part can lead to an increase in your credit score. For example, having a good mix of types of credit, avoiding opening too many new credit accounts at once, making on-time payments, carrying low balances and managing credit for many years all contribute to raising a credit score.
Time Frame
A loan broker can help correct errors on your credit report through rapid re-scoring and increase your score within 72 hours. For another fast change, pay down credit card balances and see your score increase the next month after the credit card companies report the lower balances to the credit bureaus. Building a history of on-time payments will gradually increase your score over the next few years.
Significance
If you know you will be shopping for a loan within the next year or two, start getting ready now by pulling your credit report and working to improve any negative points you find. Increasing your credit score can save you thousands of dollars by getting a lower interest rate on your loan.
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