It doesn’t matter how much money you have, the credit score is all about staying up to date with different payments. Debt is a lifestyle for people in the USA, with an increase in overall American household debt by 11% in the previous decade.

At present, the credit card debt balances for the average U.S household is $16,883 in total, and an average U.S household with any other kind of debt (including mortgages) owes a total of $137,063. The reason for this large increase in debt is because a lot of people don’t know how to smartly handle their debts, this will definitely have a negative impact on the credit score.

In this article, we will provide you with some important information that will help you to successfully repair or boost your credit score. So read on and learn!

Things to Focus on to Boost a Credit Score

Boosting a credit score can be somewhat difficult, but discussed below is the list of things that can make your score boosting attempt an easy and a successful one.

  • Credit Cards

To boost your credit score, it is important to keep the credit cards below the limits. You need to keep your credit usage ratio (i.e. your credit card balances with respect to your accessible credit) below 30 percent so as to maintain an excellent or good credit score.

Boosting a credit score takes a long process with few shortcuts. One of the shortcuts is ‘becoming an authorized user on someone else’s older card’. It is one popular strategy for boosting credit score faster. If you are an authorized user on another person’s card, you will be issued a credit card with the inscription of your name on the card that you can now make use of it to make payments.  As an approved user, you are not legitimately obligated to pay for any debt that may accumulate on the credit card account statement. The primary account holder is responsible for making the payments.

Becoming an authorized user is an easy thing you can easily do online. But if you are confronted with any difficulties, you can ask for help from credit card companies via the phone. The annual fee charged by credit card issuers and the risk involved can be an obstacle for a person trying to become an authorized user. Having the credit history of someone else on your credit report is pretty good as long as the account stays in good standing.

  • Pay Date

It is important to know that the payments you make do not immediately show on your credit record. It takes some time for your loan payment, credit card payment etc. to show on your credit report. Most people worry that a disregarded bill means a delay in payment and it will be reported to a credit agency and will definitely hurt their credit score/record. However, you don’t need to worry because payments are normally reported to credit agencies no sooner than 30 days after the payment’s due date.

Hypothetically, it can cost you a late payment charge for even delaying a payment for 30 minutes. A lot of creditors consequently impose a fee for late payment without a payment showing in your account balance. In any case, if you have rarely or never been late before, you have great chances. A credit card issuer may likely help you reverse a late fee and this will definitely not hurt your credit score.

  • Credit Repair Expert

The process of credit repair can be very bureaucratic and time-consuming. Credit repair involves fixing or improving your bad credit score in any way, form or shape. The process involves documenting a formal dispute with the credit agency in question either by snail mail or online.    

However, most people don’t usually have the time for it or don’t know how to put forth their case. In order to have a successful credit repair, they try to hire a credit repair company to carry out the process on their behalf. Due to the experience and expertise of the company, the process involved in credit repair might become easier and more effective.

Some useful Information for You

How a FICO Score Breaks Down

Calculating your FICO score requires five basic factors which are obtained from your credit record. Here are the five factors used in evaluating your credit score:

  • Payment History  

The payment history takes 35% of your FICO score. The main thing any bank needs to know is if you have paid past credit card debt balances on time. The payment history is one of the most vital factors in a FICO Score.

  • Amount Owed

This takes 30% of your FICO score. Having credit balances and owing cash on them doesn’t immediately make you a high-risk borrower, as long as you show that you are able to pay on time.

  • Length of Credit History

This takes 15% of your FICO score. Generally, a long credit record will boost your FICO scores. People who have not been utilizing credit long may also have high FICO scores, contingent upon the details present in the rest of the credit record.   

  • Credit Mix in Use

This takes 10% of your score. In calculating FICO scores, the mix of your credit cards, installment loans, retail accounts, mortgage loans, and finance company accounts will be considered.

  • New credit

This is the last factor to be incorporated in calculating your FICO score and it will also take 10% of the score. Research proves that opening many accounts in a short timeframe pose a greater risk – particularly for people with short credit history.  

Credit Score Scale

When you look at your FICO Score, you will likely want to know how you can compare. Which credit score is good? The most popularly utilized models for credit scoring have a scale of 300 to 850. Every lender sets its own measures for what a good score constitutes. Generally, credit scores fall along the lines below:

  • Bad credit: 300 to 629
  • Fair or average credit: 630 to 689
  • Good credit: 690 to 719
  • Excellent credit: 720 and up

Most FICO scores extend from 300 to 850. Keep in mind; the higher the credit score, the better.

Not familiar with the ins and outs of a FICO score? Click here to dive deeper.


Boosting your credit score is somewhat similar to loosing weigh: It requires some time. Unless there are major mistakes on your credit record that can be erased easily, there isn’t any quick solution. Usually, it takes at least a few years to upgrade from a low to high score. But in the end, you will be improving your financial status, and building up great financial propensities, in the meantime

Wondering if your credit score could affect your employability? Click here to learn more.

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