Many people want to save money by looking over their household expenses and seeing what categories can get cut or slashed. But you might also save a lot of money by working to repair your credit score.


If a person has a credit score of 600 or below, this means that they have bad credit. Bad credit means that you would get unfavorable conditions should you choose to apply for credit or loans. For example, you could deal with a higher interest rate. You may also have to pay utility deposits that those with better credit don't have to experience. In the majority of U.S. states, car insurers can use your credit history to set your car insurance rates. If your credit is poor, you will likely pay higher car insurance rates.


Is It Possible to Raise Your Credit Score by 100 or More Points?


People with a lower credit score could raise their credit score by 100 or more points. A small change in your financial habits here and there can do wonders for your future credit. However, one should note that you can not gain 100 points on your credit score overnight. You will have to make smart financial choices over time.


You can use the following three tips to increase your credit score exponentially:


1. Get Rid of the Errors On Your Credit Report

Every year, you can order free credit reports from the three credit bureaus. The three credit bureaus are Experian, Equifax, and the TransUnion. The Federal Trade Commission says that about 5% of Americans have errors on their credit report that are serious enough to negatively affect their prospects for financial services (1). 25% of credit reports have at least one error on them. If you see a mistake on your report, go through the process of disputing it.


2. Always Pay Your Bills On Time

Correcting errors on your report can help raise your score by a lot. But if there are no errors, look for past due accounts. To get the highest score, ensure that you keep all of your accounts up to date. When you start bringing your accounts up to date, it won't undo the damage wrought from your missed payments. That's why it's so important to pay every bill on time. A missed payment will remain on your credit report for seven years. The more recent the late payment, the worse it will get for your credit score.


3. Stay Far Away From Your Credit Limits

Credit utilization is the credit card balance that you use relative to your card limits. Credit utilization has one of the biggest impacts on your score. One of the best ways to raise your credit score up 100 points is to pay off as much of your credit cards as you can. Keep your credit balance to 30% of their limits.

If you maxed out all of your credit cards, work hard to pay them off. Paying off your credit cards could get you a 100-point increase within one month. However, not everyone has the money to take care of their debt. In this case, you should consider debt consolidation loans. If you follow this route, ensure that you get a better rate than your current credit cards.