If Your Credit Score is Under 700, Make These 5 Moves ASAP
You really try to be responsible with your money.
But, no matter what you do, your credit score never seems to make it over that 700 hump.
Yup — you’ve got some algorithm spitting out a three-digit number that’s basically controlling your entire life. We get it: It’s frustrating.
Don’t give up just yet, though! These five moves just might be the kickstart you need to finally get your credit score moving in the right direction.
Best of all? You can do all these things by the end of this week.
1. Write a Love Letter
…to your creditors.
If you generally have a pretty solid credit history, save for a few missteps, then sending a well-executed goodwill letter to those you owe could help get you back in good graces with them and improve your credit score.
You’ll want your letter to cover the following bases:
- Explain why and how long you’ve 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’re taking to ensure these mistakes don’t happen again.
- Appeal to their 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 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.
2. Let This Site Show You Exactly How to Improve Your Score
Your credit score is like your financial fingerprint. Everyone’s is different and for different reasons. One person’s credit score might be under 700 because they have an error on their report. Another person’s credit score might be under 700 because they have a bill in collections.
That means everyone’s strategy to improve their credit score will look different… but how in the world are you supposed to know where to start?
Thankfully, a free website called Credit Sesame will take a look at your credit report and let you know exactly what you need to do to improve your score.
Take, for example, James Cooper. He didn’t know anything about credit, but Credit Sesame showed him the exact steps he needed to take to improve his score — from a 524 to 801.*
Then there are people like Salome Buitureria, a working mom in Louisiana who, in using Credit Sesame, found a major error on her report. The site helped her fix the mistake and take additional steps to raise her credit score nearly 200 points.*
Want Credit Sesame to show you exactly how to finally get your score over that 700 hump? It takes 90 seconds to sign up and get started.
3. Ask This Website to Pay Your Credit Card Bill This Month
No, like… the whole bill. All of it.
Chances are, your credit card company is ripping you off with insane rates, and it’s getting rich off of you. But there are other, nicer companies that’ll help you out, including a website called Fiona.
Here’s how it works: If you have a credit score of at least 620, Fiona will help match you with a low-interest loan (up to $100,000) you can use to pay off every credit card balance you have. The benefit? You’re left with just one bill to pay every month, and because the interest rate is so much lower, you can get out of debt so much faster. Plus, no credit card payment this month.
Fiona won’t make you stand in line or call a bank. And if you’re worried you won’t qualify, it’s free to check online. It takes just two minutes, and it could save you thousands of dollars. Totally worth it.
Now you can finally start effectively chipping away at your debt — and watch your credit score reap the benefits.
4. Let This Website Help You Handle The Complicated 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…
When you’re trying to improve your credit score, an expert can help you tackle all the more complicated stuff.
Traditionally, though, this means hiring a credit-repair service, which can be expensive — and slow. Consumers end up paying for their services for months — even years — sometimes spending more than $1,000 to see a change in their credit score.
But we found a company called Credit Versio that makes it easy for you to do it yourself — costing you way less money and time to improve your own credit score. All you have to do is pay for access to your own credit reports and put a few letters in the mail.
Here’s what happens: When you create an account and link your credit reports, Credit Versio gets to work analyzing them. It looks for things like late payments, charge-offs, collections, repossessions and even inquiries. (BTW, Credit Versio has top ratings on Trustpilot.)
Then it creates a customized dispute strategy and guides you through removing these bad marks from your credit report. Once you’ve taken the steps you need, you can track all your disputes.
It takes minutes to link up your credit reports and let Credit Versio help you handle the more complicated stuff!
5. Pay off Debt by Saying Goodbye to Your Car Insurer
Now you’ve got five tactics you can use to get your credit score right where you want it. Good luck — you’ve got this!
* Like Cooper and Buitureria, 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.
Credit Sesame does not guarantee any of these results, and some may even see a decrease in their credit score. Any score improvement is the result of many factors, including paying bills on time, keeping credit balances low, avoiding unnecessary inquiries, appropriate financial planning and developing better credit habits.