Increase Credit Scores – 4 Simple Hacks

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Credit scores (aka Fico Scores) range between 300 and 850, with credit scores over 700 being considered respectable scores, scores below 660 would find it difficult to get approved for even small credit cards. Keep in mind that 58% of Americans have a Fico Score exceeding 700, 27% fall between 600 and 700, with the remaining 15% scoring below 600. Now let’s look at what affects credit scores and learn how to increase credit scores dramatically using some simple techniques.


you are better off notifying the creditor in advance as some installment loans might allow a special 30-day forbearance without any adverse effect on your credit.

A recent late payment affects your credit more adversely than an older one, so do not be surprised to see a drop of 60 odd points on a new late you incur if you currently have a flawless credit history.

Credit Card Capacity – 30%
It is not how much money you owe, but what percentage of your available credit limit you are using up. Your credit score will be lower if your combined credit card limits are $500 and you are using $400 of it, as compared to you using up $50,000 of $100,000 available credit.

Therefore you should carry balances on not more than a couple of credit cards and preferably keep their balances at 10% utilization of the credit limits of those accounts. Doing so can result in an increase in credit scores of over 60 points.

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Length of Credit History – 15%

The older your credit history is the higher your credit gets propelled by this factor. You can expect someone with a 20-year-old credit profile to have a relatively higher Fico Score than compared to someone that has had a credit profile for 10 years, considering all other factors are similar.

Types of Credit – 10%
This factor pertains to the assortment of the credit accounts found on your credit profile. In order to satisfy this category, one is expected to have open and active at least one of each of the different credit accounts: a) Mortgage Account b) Installment Account c) Revolving/credit card account.

Of the three different types of accounts above, not having an open credit card account will affect your credit the most. So for those who do not have an open credit card, simply acquiring one will result in a Fico Score boost of up to 30 points.

New Credit – 10%
Your score is also calculated by factoring in the average length of time accounts have been open on your credit report. Opening a new account contributes negatively to this factor, also it is not wise to close old accounts as they will lower this average. Therefore you will notice as accounts become more seasoned your credit score will propel provided no new accounts have been opened.

Also factored into this category are recent requests for your credit reports made by prospective lenders and the number of recently opened accounts you have. It is advisable to keep both at a bare minimum.



Here you want to make sure your credit report is clean of any kind of questionable negative payment information. Most credit repair companies just are limited to simple credit challenges but there is much more than can be done to rectify negative information on your report. May they be collections, late payments, liens, judgments, tax liens, each can be addressed in a surgical manner using the appropriate tactics below:

A) An effective credit bureau dispute letter: Utilizing this approach, you can dispute items with each of the 3 credit bureaus. This method is primarily effective for any negative information that may have fallen behind about 4 years ago or longer.

B) Advanced collection settlement techniques: If you have recent collections on the credit report which are valid collections, these are not likely to come off with credit bureau disputes, hence you want to utilize a pay for delete technique to ensure removal of these accounts.

C) Direct creditor disputes: If there are recent late payments or charge-offs resulting from a final missed payment, you will have to engage the creditor directly in a strategic dispute to get them to remove the negative reporting of the tradeline.

D) Victims of Fraud and Identity Theft: There’s a special procedure to remove fraud-related items from the credit report.

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CREDIT CARD CAPACITY OPTIMIZATION BY PAYING DOWN CARDS: (possible to increase credit scores up to 60 pts)

Pay down all your revolving account balances to a zero balance, but do not close these accounts. (i.e., keep balances low and limits high). However, leave a balance on only one card of around 2% of the entire credit limit.

If funds are limited then pay down the credit cards first that are near their limits (assuming interest rates are close to the same). You can also explore
moving revolving balances to installment debt; but again, do not close the revolving accounts.

LENGTH OF CREDIT & NEW CREDIT OPTIMIZATION: (possible score increase up to 40 pts)

A) Minimize new accounts, do not open any credit accounts unless necessary or if you are looking to diversify your mix of credit accounts.

B) If you are transferring balances due to an offer from a new credit card company, a better strategy than getting a new credit card is to ask your current credit card lenders if they have any existing offers.

C) If you have closed some revolving accounts recently, a better strategy than opening up new accounts would be to call the lenders where you closed the account and see if they can re-open the same accounts and are able to keep the original open date.

DIVERSIFYING TYPE OF CREDIT ON YOUR REPORT: (possible score increase up to 20 pts)

If your credit report is missing either an installment loan or a credit card, then opening up such an account will add to the diversity of your credit report.

The Final Step: Take action to increase credit scores

Now if all of this is too overwhelming and you need to either build credit or you need to remove negative items on your credit report, then you may consider looking into a credit restoration coach to help increase credit scores.

So here’s what I suggest you do next:

Take My Quiz: Hire a pro or do it yourself ?

Ok, so whether you take the self-help route or hire a professional really depends on your personal situation, income, budget and current credit situation.

I’ve designed this quiz to help you make the best decision.


14 thoughts on “Increase Credit Scores – 4 Simple Hacks

  1. my credit score decreased by 25 points due to a remark on my auto loan. the remark has been deleted since so will my credit score go back up 25 points?

    1. Hi Jimmy, given that it was a recent late the score jump would be similar, however if it was an old late payment , the affect won’t be as much.

  2. Hi Ali,
    Both Equifax and Transunion launched investigations of all of my accounts (both closed and open ones). I did not request this. I had no disputes with any of these accounts. Yet, both bureaus put remarks on all my accounts stating they are “Disputed”!! This has wreaked havoc with my FICO scores, as they both keep adding/removing remarks without my knowledge or permission. At one point, Equifax claimed that my mortgage account was closed! They keep altering my account information on their own without my permission!! How can I get them to stop?? I even filed complaints against both with the CFPB, and both responses did not acknowledge this issue. They are also deleting older accounts (again, without my permission), which has lowered my credit age from 28 years to 3 YEARS! This lowered my scores significantly. Why are they doing this when I never asked them to?? Can they mess with my accounts without my approval??

    1. Hi Andre, a new card won’t help, however, if you were missing an installment account on your credit report, then opening one up may get you upto 10 points.

  3. Hello, I’m wondering how many open accounts should I carry on my credit report to have the highest score?

    1. Hello Mr Ali I have an account reporting improperly as a foreclosure from 2011, I’ve disputed it a couple of years ago to no avail. Would you recommend a 2nd dispute using this letter?

      1. Hi Helen, give it a crack, but be sure to dispute the address linked to the account as well, this will help delete.
        If that doesn’t work you can lodge complaints with the Consumer Financial Protection Bureau at against the bureaus and the mortgage company

    2. Hi Brandi, about 4-5 open accounts is opportune, any less would not be. More is fine as well, but too many new accounts being opened bring down the score until the accounts are seasoned.

  4. Hi Ali, I do not have a credit score, how can I generate one asap without spending too much money ?

    1. Hi Abigail, simply look into a secured credit card if you do not have any open accounts, once you may 6 payments on an open account you should have a score generated.

      Good luck !!

  5. Over the past few weeks, I have watched my score go down since I got a new credit card, but the balance is low on it, why did this happen ?

    1. Hi Paige, sometimes if you open up a new account the score may go down due to the fact that your Fico score takes into consideration the “average age of open accounts” and this particular account decreased the “average age of open accounts” thereby lowering your score. However, time should take care of this. You can also close more recently opened accounts if you’re not using them, but do not close any old accounts that are increasing the “average age of open accounts”

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