If Your Credit Score Is Under 700, Make These 4 Moves This Week

A woman at home checks her credit score on a laptop computer.
Tina Russell/The Penny Hoarder
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You work hard to be a responsible credit user. 

But no matter what you do, your credit score never budges over 700.  And you are so, so frustrated by the whole dang thing.

We don’t blame you. It’s hard to feel like you’re doing everything you’re supposed to, only to have an algorithm spit out a seemingly inexplicable three-digit number that brands you as “lesser than” in the eyes of the world’s financial institutions — especially when that three-digit number controls so much of your life.

But don’t give up! These four moves might be the kickstart you need to get your credit score moving in the right direction — and best of all, you can do them right this week.

1. Write a “Goodwill Letter” to Your Creditors

If your credit history is generally pretty good, save for a couple of missteps, then a well-executed goodwill letter may be one way to get those slip-ups removed from your report. 

You’ll want to cover the following bases when writing your goodwill letter:

  • Explain why and how long you have been a loyal customer of the creditor.
  • Take responsibility for the mistakes that led to the blemishes on your credit history.
  • Describe the steps you are taking to ensure they don’t happen again.
  • Appeal to your audience’s sense of empathy. Show that you want forgiveness but also that you are determined to do better going forward. Show them you deserve this!
  • Keep your letter concise, clear and to the point.

Don’t forget to include important information, like your account number and the date and amount of the missed payment you want removed from your credit history.

Once you’ve written your goodwill letter, address it using the information on the creditor’s website, cross your fingers for good luck, and drop it in the mailbox.  

2. Remove the Mistakes From Your Credit Report

Did you know one out of five credit reports has an error, according to a study by the Federal Trade Commission?

And those errors could mean the difference between a credit score in the 600s and one in the 700s.

Jamie Cattanach saw this firsthand as a victim of identity theft. She pulled her credit report and saw her score had plummeted to just below 600 after someone opened an AT&T account using her information. She got to work disputing the errors, and after writing just one letter, she was on the road to rebuilding her credit. Within a few years, her credit score was well over 700.

To keep a closer eye on your credit, get your credit score and a “credit report card” for free from Credit Sesame. It breaks down exactly what’s on your credit report in layman’s terms, and helps you identify where the errors are.

Because it simplifies everything, you should be able to spot any errors. For instance, if you find an “unpaid” credit card that you know you paid, or a bill in collections you know never existed, you can dispute the incorrect information and raise your credit score.

The proof is in the numbers: 60% of Credit Sesame members see an increase in their credit score; 50% see at least a 10-point increase, and 20% see at least a 50-point increase after 180 days.*

Did we mention Credit Sesame is free? 

3. Let This Company Help You Pay Off Your Credit Cards

So now you’ve appealed to the better angels of your creditor’s nature, and you’ve gone over your credit report with a fine-tooth comb and a magnifying glass in search of errors you can dispute.

Now what?

Your next step is to take your high-interest debt and consolidate it into a single loan with a lower interest rate. One payment per month is way easier to keep track of than three or four, right? That means fewer chances to be late on a payment, which means fewer opportunities for your credit score to take a hit.

And best of all: The lower interest rate means you’ll be spending less money on your debt in the long run.

That’s where a company like Fiona can be helpful. In under a minute, it can help you find personalized options to refinance or consolidate your debt to potentially save thousands of dollars in interest.

Fiona will show you all the lenders willing to help you pay off your credit card and eliminate the headache of paying bills by allowing you to make one payment each month.

If your credit score is at least 620, you can borrow up to $100,000 (no collateral needed) and compare interest rates, which start at 3.84%. The idea is to secure a loan at a lower interest rate, potentially helping you save thousands. Repayment plans range from 24 to 84 months.

So even if you’re simply curious about what’s out there, know that checking rates on Fiona won’t hurt your credit score — and can probably save you in interest.

4. Use This Company to Remove the Really Hard Stuff

Now it’s time to take a look at everything you haven’t been able to address in the first three steps. And you might need to call in reinforcements for this one — especially if debt collectors are involved. 

If you’ve been getting phone calls and mail from debt collectors, look into Collection Shield 360, a free credit repair service that helps people clean up their credit reports and deal with collection agencies. It will contact your debt collectors to have negative marks on your credit report removed, among other steps to improving your credit.

The service helped 31-year-old server Tabatha Pankop deal with lingering bills from T-Mobile, Bright House Networks and Verizon. Her credit score jumped up nearly 200 points in just a few months, enabling her to move into a better apartment and start looking for a townhouse to buy.

Now you’ve got four tactics you can use to get your credit score right where you want it. Good luck — you’ve got this!