Q&A: How to boost your credit scores in the next year

Dear Liz: I am 36 with a 535 credit score and about to move back to the U.S. from Colombia with my future wife. I’d like to increase my score by 100 or 200 points within eight to 12 months. Is it possible?

Answer: Increasing your credit scores to the mid-600s within a year or so is probably a reasonable goal.

Most consumer credit scores are on a 300-to-850 range. The higher your scores, the easier it will be to get approved for loans and credit cards, plus you’ll be offered better rates and terms.

What’s considered a good or bad score depends on the lender and the scoring formula. In general, scores below 630 or so are considered bad while scores in the mid-600s are usually considered “fair.” Good scores typically begin around 690.

Consider a credit builder loan from a credit union or online lender. The money you borrow is placed in a certificate of deposit or a savings account for you to claim after you’ve made 12 on-time payments. You’ll pay interest to the lender but be building your savings at the same time.

Secured credit cards are another way to build credit. You deposit a certain amount with the issuing bank, often $200 to $2,000, and get a credit line in the same amount. If you use the charge lightly and pay it off in full each month, you can build credit without paying interest.

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