How To Improve A 500 Credit Score Fast?


Having a low/poor credit score can be really harmful when you’re trying to process in life. 

When you want to get home and need to be approved for a mortgage, or need a new ride and need a car loan. 

A 500 credit score is going to leave you in a tight spot, so it is better to learn how to improve a 500 credit score. 

You can take a few steps on your own and you can hire a credit repair service. 

Want Help Removing Items Off Your Credit Report?

First, we will touch on some tactics you will handle yourself. Then, we will touch on how credit repair companies can advise and do some work for you. 

Factors Of A FICO Score:
  1. Payment History (35%)
  2. Credit Utilization (30%)
  3. Length Of Credit History (15%)
  4. New Credit (10%)
  5. Mixed Credit (10%)

You can pick and choose which section you’d like to attach but we suggest your focus on the credit utilization ratio. Credit Utilization is your credit to debt ratio.

It is the ratio of your outstanding credit balances to your credit limit.

For example, if your amount owed is $30 and your credit limit is 100, then your credit-to-debt ratio (or credit utilization) is 30 percent.

You can use these tactics to learn how to improve a credit score below 500, as well as how to improve a credit score from 500 to 700.

How long does it take to improve a 500 credit score? It’s all about how proactive, consistent, and aggressive you are in improving your score.


7 Action Steps: How To Improve a 500 Credit Score 

  1. Lower Your Credit Utilization
  2. Dispute Errors On Your Credit Report
  3. Pay down Debt 
  4. Ask For Credit Increase (Don’t Use it) 
  5. Cut Cards Up Once You Lower the Credit Util (Don’t Close Accounts)
  6. Mix It Up! (Car Loans, Mortgage, etc.)
  7. Get A Secured Credit Line

Let’s expound on some of these points and the quickest things you can do to increase your credit score. 


Dispute Errors On Your Credit Report

One of the fastest ways to move the needle on improving a 500 credit score is deleting/disputing mistakes on your credit report.

You have to get your credit report and look for mistakes, inaccuracies, and errors. Then, you can write a letter disputing that information, which will get it removed from your report.

This can take a long time but you can hire someone to do this to save time while you are taking action on other steps.


Lower Your Credit Utilization

Because Credit Util is a considerable part of your credit score (CS), we are going to focus on those tactics. 

Also, a lot of the factors that influence your CS are affected by your credit to debt ratio. 

  • Pay down credit card debt to 10%. The popular opinion is having your ratio down to 30 or 20, but we want to be aggressive in making changes. 
  • Ask someone you trust, with good credit, to be an Authorized User. This will show that you have more credit and lower your credit to debt ratio (on paper).
  • Ask For Credit Increase (Don’t Use it). Choose a credit card you are in good standing with, ask them for a credit increase, and do not use it. In fact, cut it up.
Mix It Up! (Car Loans, Mortgage, etc.)

Credit scoring models take into consideration all of your debt, loans, credit lines, and payment history. 

Lenders like to see diversity on your credit report, so if you only have credit cars, try getting a secured loan, installment loans, finance company accounts, Car loans, RV Loans, Motorcycle Loans, etc


How Can A Credit Repair Company Help? 

A credit repair company can help you remove negative items from your credit report, advise you on the best course of action, monitor your reports, and write those dispute letters on your behalf. 

Here are 3 companies we recommend that provide a free consultation. We suggest you call all three to see what they can offer you and compare fees.

Get Consultation From These Credit Repair Companies 


how long does it take to build credit from 500?

It takes anywhere from 6-18 months depending on where you start your process. Once you get into the prime credit range, it will take longer because there will be less room for improvement. 

It also depends on how your build your credit- what tactic are your using and how aggressive you are in your approach.


How to improve a credit score from 500 to 700?

Here is some article that shares some of these tips with an exact goal in mind:


Good Luck Moving Forward

We hope this ‘how to improve a 500 credit score’ post helps you reach yours as quickly as possible. 

Remember, the longer it takes you to take action, the longer it will take for you to see improvement.

You can attack all these action points yourself and hire help so you won’t be alone during the process.

Here Are Basic Tips To Keep Score Up Once It’s Improved

  • Make Payments On Time 
  • Credit A Budget You Can Stick To
  • Monitor Your Credit Consistently 
James Willaims
 

Hey There, James here. I am the co-founder and editor of this site. I have over 10 years experience in business and 5 in the credit repair world