How to Raise Your Credit Score 100 points in One Year

I know, I know you’re probably thinking, “Is it really possible to raise my credit score 100 points in only 1 year?” The answer is… YES!

Results are not guaranteed, but I’ve done it and so have a bunch of my clients, students, fans, followers and friends based upon the steps I’m about to show you. Earlier in the year, I did a month-long, financial challenge called, The B Money Challenge.

Each day during the challenge I gave participants a task to complete. The video below is from Day 25 of the challenge. The task that day was: Raise Your Credit Score. The advice I gave then, is still relevant now.

Before you start, let’s take care of credit cards with high interest rates. Because I suggest that you pay off your debt with the lowest balances first, you may worry about neglecting your credit cards with high interest rates. There are a couple ways to get your interest rates down.

  1. Call your credit card company(s) and negotiate for lower rates.
  2. Transfer the balance of your higher interest rate credit card(s) onto a lower interest rate card. Wondering how to do a balance transfer? Here’s how:
    1. Go to bankrate.com and search for a balance transfer card. Look for cards that offer a 0% interest rate for at least 6 months and the lowest transfer fee available. Take note, when doing a balance transfer, credit card companies will often charge you a fee – about 3% of the total balance.

(FYI: Sometimes credit card companies run a special where you can transfer your balance without a fee. That’s the type of deal you’re looking for on bankrate.com!)

    1. Once you locate a card you’re interest in, call the company and ask:
      1. How long is the 0% introductory rate?
      2. What will my rate be after the introductory rate expires?
      3. How much is the transfer fee?
      4. What happens if you’re late with a payment?
      5. Is there any fine print you should know about?

Now here’s the step by step guide to your debt repayment plan: Enjoy!

If you watched the video (hint, hint, watch the video), then this is just a review.

How to raise your score 100 points in 1 year…

1)    Pay down debt (30% of your score)

2)    Pay your bills on time (35% of your score)

3)    Auto-pay off a small debt aka bring it’s balance to $0 EVERY month. FYI: This is where the magic happens. Doing this will make your credit score jump like Jordan.

4) Become an authorized user on a credit card account in good standing

The Good News:
When you’re added as an authorized user, the account will appear on your credit reports, too. If the account remains positive with a low balance, it can help you establish and improve your credit history.

The Great News:
An authorized user has permission to use the credit card, but is not responsible for any of the debt. 

The AWESOME News:
If the account is reported and there are delinquencies appearing on the account, it is likely that the delinquencies are affecting your scores. However, because you are not responsible for the debt, credit scoring companies will remove authorized user accounts that become delinquent.

The account may be removed automatically, but if you find it is still being reported, follow the dispute instructions provided with your credit reports and request that it be deleted. Basically, the authorized user get all of the benefits and none of the risks.


Oooooo! I just remembered something! I didn’t mention it in the video, but if you consistently keep your credit card balances below 30% of your credit limits, this will help to tremendously raise your score too.  This means if your limit is $1000, keep your balance below $300. Also, don’t forget to get your Trans Union score for FREE via Credit Karma, and use their FREE service to help you monitor your progress. They offer tips on how to improve your score as well. Ummm, did I mention it was all FREE?!

If you need more help, here’s an awesome resource: “What the FICO: 12 Steps to Repairing Your Credit” by Ash Cash 51MuJJseCfL._BO2,204,203,200_PIsitb-sticker-arrow-click,TopRight,35,-76_AA278_PIkin4,BottomRight,-69,22_AA300_SH20_OU01_

This book was BY FAR, the best & simplest book I’ve ever read about credit. I actually learned some things that I didn’t know! Seriously…I was blown away at some of the steps & tips the author shares. If you’re having problems with your credit…RUN, don’t walk to get the book. You’ll see…

You’re welcome.

LIVE RICHER,

The Budgetnista