By now you've heard: the better your credit score, the bigger the benefits, such as lower interest rates and easier loan approvals. Improving your credit score by 100 points is significant and can add up to big savings over time.

Mortgage lenders use your credit score to weigh the risk of loaning you money, which makes it a major factor in the outcome of your loan application. Beyond approval or denial, mortgage lenders, auto dealers, and credit card companies also use theses score to determine interest rates. Understanding the factors that affect your credit can help you improve your credit score fast and maintain it over time.

Fix Errors on Your Credit Reports
Go to annual creditreport.com for your free report from the three major credit bureaus: Equifax, Experian and Transunion. Check each one carefully. If you suspect a mistake within the last two years, dispute it immediately. Identifying errors older than that may actually impact your score negatively. Credit bureaus have 30 days to respond.

How much of your available credit you use can impact your credit score. It’s best to not exceed balances of 30% of your credit limit. Pay more toward your balance or request an increase in your limit — either can help get you below 30%.

Tackle Past-Due Bills
Payment history is the most important factor in determining credit scores. Get current on any past-due accounts ASAP. It may be helpful to sign up for due-date reminders via text or email. 

How much of your available credit you use can impact your credit score. It’s best to not exceed balances of 30% of your credit limit. Pay more toward your balance or request an increase in your limit — either can help get you below 30%.

Tackle Past-Due Bills
Payment history is the most important factor in determining credit scores. Get current on any past-due accounts ASAP. It may be helpful to sign up for due-date reminders via text or email. 

Payment history is the most important factor in determining credit scores. Get current on any past-due accounts ASAP. It may be helpful to sign up for due-date reminders via text or email.

Catching up on late payments can help you improve your credit score fast. If your creditors allow automatic payments, setting them up is a great way to reduce the chances of late payments in the future.

Only open new credit accounts when it makes financial sense. Multiple credit inquiries over a short period can lower your score

Before lenders give someone money, they want to be confident they’ll get it back. Accounts that are sent to collections are a red flag that the account holder is unreliable.

If your credit limit goes up but your balance doesn’t, it lowers your credit utilization. As long as you continue to spend responsibly, a limit increase can boost your credit fast.

By doing these three things, you can go from “bad credit” to “good credit” or even “excellent credit” in just a short time.

To learn more about how to improve your credit score by 100 points, find a local mortgage broker in your area.