MoneyLife

How to Improve Credit Score in 3 Months

By Kaitlyn Wolf
improve credit score in 3 months

If your credit score isn’t as high as you’d like it to be, don’t worry. You can increase your score in as little as three months by doing things like paying down debt, disputing errors on your credit report, and avoiding your credit card, you’ll increase your credit score before you know it. 

This guide is going to answer your question, “Is there a way to improve credit score in 3 months?” It will also help you get on track for a better financial future! 

Improving your credit score quickly

Your credit score is one of the most important factors that will affect your financial future for years to come. With a poor credit score, you might have trouble securing a loan, renting an apartment, getting a car, or even landing a job. 

The good news is that you aren’t doomed to a low credit score for the rest of your life. There are several steps you can take to repair your credit score quickly and get on the road to recovery. Here’s a breakdown of how you can improve your credit score in 3 months.

Credit Builder loans from MoneyLion 

One of the best ways to improve credit score in 3 months is by making regular payments on a loan. However, if you have bad credit or no credit history at all, it can be a challenge to secure the loan in the first place. That’s where a Credit Builder loan from MoneyLion comes in!

Credit Builder loans are a great option for anyone with a poor credit score or no credit at all because these loans don’t take your credit report into consideration when figuring out if you qualify. Instead, you’ll qualify based on your income, which will help MoneyLion estimate whether you will be able to make the monthly payments.  

You’ll be charged an annual percentage rate (APR) that varies from lender to lender. But once you’ve taken out the loan, make sure to stay on top of your payments. Payment history makes up 35% of your credit score, so making your payments on time will boost your credit score, whereas missed or late payments can negatively affect your score. 

Disputing errors on your credit report

Everybody makes mistakes and credit bureaus are no different. Check your credit report on a regular basis to look for any inaccuracies that could be negatively impacting your score. 

There might be reports of late payments that were actually on time, accounts that don’t belong to you, or other misinformation. Federal law gives you the right to an accurate credit report so credit bureaus are required to fix the errors immediately. 

You can obtain your report and dispute any errors by getting in touch with any of the three major credit bureaus, which include Equifax, Experian, and TransUnion. Make sure you only dispute true inaccuracies on your credit report and never dispute any correct information just because you want it removed. 

Improve your credit score with help from the experts 

Need some help disputing mistakes on your credit score? Our partner, Dovly, has you covered! Dovly’s credit repair solution is simple and transparent. Plus, it can make a major impact on your score seeing as 92% of customers experience a 54-point increase in just six months!

All you have to do is let Dovly know what your current credit report issues are. Then, just sit back and let them do the work for you. Dovly will automatically dispute any and all mistakes with the three credit bureaus, monitor your credit, and update your score. Get started with Dovly here

Track your finances

If you don’t know where you are with your finances, it can be much harder to improve them. Tracking your spending and budgeting habits will give you a clear picture of where your money is going and how you can cut back on expenses in order to pay down debts faster and ultimately improve your credit score. 

When you open a RoarMoney℠ account, tracking your spending is effortless. With the spend tracker report, you’ll have the ability to opt into weekly reports that outline your spending habits so you can see how you’re spending. That way, you can stay on top of your finances and stick to your budget. 

Pay down debt

Your credit utilization rate represents how much of your available credit line you are using. It’s calculated by dividing your total debts by your total available credit. The rule of thumb is that your credit utilization rate should be at or below 30% but your goal should be around 10% utilization. 

Paying down debt will lower your credit utilization rate and improve your credit score. This is good because it will show lenders that you are responsible with your credit. If you’re not able to eliminate all of your debt, at least try to make more than the required minimum payments each month. 

Making more than your minimum payments will help you knock out debt faster, boost your credit score, and lower the amount you pay in interest overall. Less interest paid means more money in your pocket! 

Avoiding overusing credit cards

Do your best to avoid overusing your credit cards. This will help you stay out of debt and save money on expensive interest rates as a result. 

While this type of credit can raise your score if used responsibly, credit cards also have one of the highest interest rates out there, so it’s a good idea to stay away from making large purchases with them. If you can’t pay off your card right away, try to avoid using your credit card. 

An alternative to using credit is utilizing the Instacash feature available from MoneyLion through a RoarMoney account. After all, unplanned expenses arise, and you may need cash right away. With Instacash, you can get a cash advance of up to $250 with no interest at all! 

Only apply for loans when necessary

Refrain from opening new credit accounts or applying for loans when you’re working to raise your credit score. Every time you apply for a line of credit, lenders will pull your credit score via a hard credit check, which will lower your score by a few points every time. You should only apply for loans when you are serious about making a purchase or opening a new account to avoid hard credit pulls. 

Boost Your Credit Score with a MoneyLion Credit Builder Loan

So, how long does it take to raise your credit score? You can raise your score in as little as three months! There are lots of ways by which you can boost your score, like paying down debt, making payments on time, disputing errors on your report, and only applying for new loans when necessary. 

Make sure you always make your payments on time for each and every line of credit that you have, including personal loans, student loans, credit cards, home loans, and auto loans, as they can all impact your credit score. Want to take improving your score a step further? Apply for a Credit Builder loan from MoneyLion!

You’ll be able to establish or rebuild your credit score in no time! With a Credit Builder Plus membership, you can obtain a loan of up to $1,000 with a competitive APR and no hard credit checks. As you make consistent payments to your loan, your credit score will improve over time. 

Most members found that their credit scores improved by an average of 60 points in only 60 days! Start boosting your credit score today by downloading the MoneyLion app. 

Create an account and follow the instructions so that you can apply for a Credit Builder Plus membership. Once you are approved for your credit-building loan, you’ll be on the fast track towards improving your credit score. Plus, you can enjoy the benefits of credit monitoring, credit advice, and more as part of your MoneyLion Credit Builder Plus membership.

FAQs

What bills help build credit score?

Bills that can affect your credit score include rent payments, utility bills, cable, internet bills, phone bills, insurance payments, car payments, mortgage payments, student loans, credit card payments, and medical bills. You can use Experian Boost if you want to add those bills to your credit report and raise your credit score!

How fast can I rebuild my credit score?

Raising your credit score won’t happen overnight but it can happen faster than you think. Generally, it takes about 3 months to see a boost in your score. Fast track your score growth by getting a Credit Builder Plus loan from MoneyLion. Most MoneyLion Credit Builder Plus Members see an increase in their score of up to 60 points in 60 days. 

Does financing a car build credit?

When you first finance a car, you may see a small dip in your credit score. However, if you make consistent on-time payments to your car loan, your score will increase over time. Late payments can negatively affect your credit score.

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Join Credit Builder Plus to get a loan up to $1,000, credit monitoring, exclusive rewards, access to 0% APR cash advances, and more. Over half of members raise their credit over 60 points within 60 days!

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