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People Who Have a Credit Score Under 700 Should Make These 5 Moves ASAP

Updated September 14, 2021

A woman at home checks her credit score on a laptop computer.

Tina Russell/The Penny Hoarder

You really try to be responsible with your money.

But, no matter what you do, your credit score never seems to make it over that 700 hump.

Yup — you’ve got some algorithm spitting out a three-digit number that’s basically controlling your entire life. We get it: It’s frustrating.

Don’t give up just yet, though! These five moves just might be the kickstart you need to finally get your credit score moving in the right direction.

Best of all? You can do all these things by the end of this week.

1. Write a Love Letter

…to your creditors.

If you generally have a pretty solid credit history, save for a few missteps, then sending a well-executed goodwill letter to those you owe could help get you back in good graces with them and improve your credit score.

You’ll want your letter to cover the following bases:

Explain why and how long you’ve been a loyal customer of the creditor.
Take responsibility for the mistakes that led to the blemishes on your credit history.
Describe the steps you’re taking to ensure these mistakes don’t happen again.
Appeal to your their sense of empathy. Show that you want forgiveness but also that you are determined to do better going forward. Show them you deserve this!
Keep your letter clear and to the point.

Don’t forget to include important information, like your account number and the date and amount of the missed payment you want removed from your credit history. Once you’ve written your goodwill letter, address it using the information on the creditor’s website.

2. Let This Site Show You Exactly How to Improve Your Score

Your credit score is like your financial fingerprint. Everyone’s is different and for different reasons. One person’s credit score might be under 700 because they have an error on their report. Another person’s credit score might be under 700 because they have a bill in collections.

That means everyone’s strategy to improve their credit score will look different… but how in the world are you supposed to know where to start?

Thankfully, there are free websites that will take a look at your credit report and let you know exactly what you need to do to improve your score.

Take, for example, James Cooper. He didn’t know anything about credit, but this website showed him the exact steps he needed to take to improve his score — from a 524 to 801.

Then there are people like Salome Buitureria, a working mom in Louisiana who found a major error on her report. The site helped her fix the mistake and take additional steps to raise her credit score nearly 200 points.

Want to see exactly how to finally get your score over that 700 hump? Take a look at how this credit-monitoring website has helped these people, then sign up and get started. It takes just 90 seconds.

3. Ask This Website to Pay Your Credit Card Bill This Month

No, like… the whole bill. All of it.

Your credit card company is ripping you off with insane rates, and it’s getting rich off of you. But there are other, nicer companies that’ll help you out. This personal loan website knows the best ones and could pair you up as soon as tomorrow — and it could cut your credit-card interest by 69%.

Here’s how it works: It will match you with a loan that’ll cover your credit card tab. Use that loan to pay off your debt, then make monthly payments to repay the loan. It could lower your monthly payments and help you pay off that debt a lot faster. Plus, no credit card payment this month.

You won’t have to stand in line or call a bank. And if you’re worried you won’t qualify, it’s free to check online. It takes just three minutes to check your rate and compare your personalized options. And it could save you thousands of dollars. Totally worth it.

Now you can finally start effectively chipping away at your debt — and watch your credit score reap the benefits.

4. Let This Company Handle The Complicated Stuff

Now it’s time to take a look at everything you haven’t been able to address in the first three steps. And you might need to call in reinforcements for this one — especially if debt collectors are involved.

If you’ve been getting phone calls and mail from debt collectors, look into a free service that helps people clean up their credit reports and deal with collection agencies. We talked with 31-year-old server Tabatha Pankop, who told us how this service contacted her debt collectors on her behalf to negotiate to get marks removed from her credit report.

She had some lingering bills from T-Mobile, Bright House Networks and Verizon, but doing this helped raise her credit score nearly 200 points in just a few months. See how much it can help you improve your credit.

5. Pay off Debt by Saying Goodbye to Your Car Insurer

When you’re trying to raise your credit score, paying off debt is one of the most impactful things you can do. It might feel like you’ve already cut every enjoyable thing out of your budget, but the truth is, one of the simplest expenses you can cut is car insurance.

If you really want to get the best price on car insurance, experts say you should be shopping twice a year. OK, we can hear you laughing from here. Who has time to do all that?

But seriously, insurance companies take a lot of factors into consideration, and they change all the time. Ipso facto — you’re paying too much.

Thankfully, this free website knows what factors affect these prices, and it will do the shopping for you — in just two minutes.

All you have to do is enter basic information about your car and driving history, then it compares prices from more than 100 companies to find you the best price.

Its users save up to $440 a year.

If you find a policy you like, you can sign up online instantly.

Who’s laughing now?

Now you’ve got five tactics you can use to get your credit score right where you want it. Good luck — you’ve got this!