Movin' on up - How can I quickly raise my credit score?

March 13, 2013 2:22 PM

I am currently unemployed, but am receiving unemployment and some temp jobs here and there and have a very good balance of budgeting vs. spending. I have a checking and saving account, 2 credit cards, plus 2 retail credit cards that I pay off the balance of each month. 1. What can I do to quickly increase my 654, 666, 670 scores to the 700's? 2. Does being unemployed affect my credit score? 3. Will acquiring a car loan now affect my credit score?
posted by i_wear_boots to work & money (2 answers total)

In the past have you had trouble paying on time? If you always pay on time consider that 4 cards is a lot and you might have too high a balance on the card. Even though you pay it off each month most cards submit the balance each month even though it is always paid off. Try not using the cards for one billing cycle then checking your score. Or use only one card and pay it off each week.

I would also suggest looking over your full credit report to make sure there are no errors. Your score is low for someone who pays on time ( again, unless you have a past history of collections).

There is no real way to quickly increase your score if the balances are not the problem. It just takes time. A car loan will likely lower your score in the short term but a history of paying it off will be good for your score in the long term.

AFAIK being unemployed does not affect your score.
posted by saradarlin at 2:31 PM on March 13 [1 favorite]

1. What can I do to quickly increase my 654, 666, 670 scores to the 700's?

Go back in time and pay your bills on time. A fraction of your score is determined by outstanding balance, but credit cards are high enough interest that you should likely have paid them off already if you had any spare savings.

2. Does being unemployed affect my credit score?

No, but it certainly affects your ability to repay, and thus creditworthiness. When I got a car loan, I had to provide two months of pay stubs, despite having a credit score in the 800s.

3. Will acquiring a car loan now affect my credit score?

Yes. A car loan, if you can get one, will increase your overall indebtedness, and increase the risk for the next lender. Thus your score will go down. And recover as you pay it off.
posted by pwnguin at 7:12 PM on March 13 [1 favorite]