Your credit score is one of the most important numbers in your life. It can affect everything from your ability to get a loan to the interest rate you pay on that loan. A low credit score can also mean that you have to pay more for car insurance, car payment and your mortgage payment.
Fortunately, there are things you can do to improve your credit score in just 30 days. In this article, we will outline some simple steps that you can take to start boosting your credit. We will also provide some tips on how to maintain good credit over time.
1. Pay your bills on time
One of the simplest ways to improve your credit score is to pay your bills on time. Late payments can have a negative impact on your credit score and can stay on your credit report for up to seven years.
If you are having trouble making all of your payments on time, try to set up a payment plan with your creditors. This will show that you are taking steps to rectify the situation and can help improve your credit score over time.
2. Use your credit card responsibly (also known as Credit Utilization)
If you want to improve your credit score, you need to use your credit card responsibly. This means not charging more than you can afford to pay off each month and making sure you pay the full balance off or close that amount if you want to increase your score. If you are not able to pay the full balance try to pay off 40%-50% of the balance. Goal is to be at 0% utilization every month, meaning you use your credit lines every month but you pay them all off. This will really help get your score go up.
If you are having trouble staying on top of your credit card payments, consider switching to a card with a lower interest rate. This will help you save money in the long run.
3. Maintain a good credit history and don’t close accounts
Maintaining a good credit history is one of the most important things you can do to improve your credit score. A good credit history means that you have always paid your bills on time, have never gone over your credit limit and have never missed a payment.
Length of credit history on your credit is very important, the longer you have had a credit line in good standing the better your credit score. And if you are not using a credit card, do not close it because if you do you will lose that credit card’s history on your credit and it may drop your credit score.
4. Avoid opening too many new accounts at once
When you’re trying to improve your credit score, it’s important to avoid opening too many new accounts at once. This will only make it more difficult for you to keep track of your finances and maintain a good credit history. So make sure to only open a few new accounts at a time and be careful not to overspend.
The best way to improve your credit score is to start by checking your credit report for errors. You can get a free copy of your credit report from each of the three major credit bureaus once a year. So make sure to order your reports and check them for mistakes
Two Hacks to get ahead of the curve:
- Pay your most recent late accounts and derogatory accounts first because these are the ones that impact your credit score the most. The older ones have an impact but not as much. So focus your efforts and money on the recent stuff first. Since late payments can stay on your account for up to 7 years, try not to have any late payments EVER!
- Order a credit report with a loan officer if looking to get a mortgage and ask for a Rapid Rescore report. This report is like a cheatsheet that will tell you what to do on your credit report in order to achieve a certain credit score. It is a very number specific report and it will give you clarity if you have a lot going on with your credit and don’t know where to begin. And it is FREE!!
Increasing your credit score doesn’t have to be difficult. If you follow these simple steps and maintain good habits, you should see an improvement in your credit in one month. It may also help if you check over your credit report for errors from time to time—you can get one free copy of it every year from each of the three major bureaus.
There you have it: five easy steps to improving your credit score. Just make sure to be responsible with your money and stay on top of your payments, and you should see an improvement in no time! So order your report now, check to see where you stand and start taking steps to boost your credit score today!
