Raise credit score 100 points overnight (well, fast anyway)

If your piggy bank feels empty and you need to save up a bit, you are not the only one. There are a lot of people on the same mission - going over their household expenses but without luck in spotting the right items to cut from the list.

But did you know that working on your credit can be one of the best ways to save long-term?

As strange as it sounds, it is. For example, if you have a credit score of around 620, you are typically in the line of 'bad credit'. This means that every time you need to extend your credit, you are likely to be charged a high interest rate but also pay utility deposits that people with better credit don't. That's not the end- in most of the states, this bad credit can also trigger your car insurance rates and make them go up.

However, if you could only reach 720, you are in the zone of the 'excellent credit'. Believe it or not, the hundred-point difference is all that it takes for lenders to see you in a very different light. So, what can you do to move from bad credit to good one?

3 Ways To Improve Your Credit Score By 100 Points: A Smart & Realistic Choice

If you are thinking whether a 100-point improvement on your credit score is realistic, the answer is yes.

The truth is, the lower your credit score is - the more likely you will achieve this 100-point increase. This is only because there is a lot more on the upside and even the smallest change can result in a greater score. When you already have a strong credit history, it is obviously harder to improve the scores.

Still, there are no overnight solutions when it comes to a solution like this. The best way to let your bad score fade away and make it good is time itself - but only if it is used rationally and smart choices are made by your side.

Below, we are listing 3 surefire ways to ramp up your credit score by 100 points::

Erase the errors off your credit report - According to the Federal Trade Commission, more than 5% of consumers have errors on their credit report. In fact, the errors are so bad that they result in a higher price for a financial product or insurance. All those small mistakes may cause small and negative consumer scores. And when summed up, they can easily make 100 or near to this number.  This is often what people hire The Credit People for.

Pay off some debt - This is obviously a no-brainer, but also a thing that helps the credit score a lot yet many people are not aware of it. According to some research, payment history accounts for more than one third of the credit score in total. Therefore, keeping your accounts up to date is of paramount importance to add more than 100 points over the long run.  If you pay off debt, we've seen people get a lot of points back on their credit score just by doing this.  Borrow money from a friend (not a credit related loan), pay down debt, and raise your score.

Don't go anywhere near the credit limit - If you are unfamiliar with credit utilization, it is basically the amount of your credit card balance that you use relative to your credit limit. In the same time, it is an element that has a big impact on your score. The best way to add the 100-point difference is to keep your balances to 30% or less of your credit limits. And if you cannot pay them down that much, at least pay what you can.

As you can see, the 100-point difference is definitely not hard to pull off - especially when time goes into consideration and turns to your favor.

All or nothing approach: "Nothing" is not a good idea

If you can't get your score where you need it to be in time, start anyway.  Things change, timeframes change, and you never know when you'll need your credit in the future.  Get started.  The bottom line is that your credit score was, is and always will be fragile to things like late payments, errors and limits. It is after all what banks dictate and a story you cannot get away from. The best way is to play it smart and make the most of it.

And if you are not sitting on enough cash to do that, there are always options like debt consolidation loans that move your debt to the installment side of the credit scores ledger - well, as long as you are able to get a personal loan at a better rate than the one attached to your credit cards.