How Can I Raise My Credit Score In 30 Days? 4 Things You Can Do Now To Improve Your Credit Score

If your credit score could use some work, this is for you! We’ll show you 4 things you can do to improve your credit score in 30 days. 

The better your credit score, the less it costs you to borrow money for things like buying a home, a car, taking a personal or business loan because you’ll be offered a lower interest rate. A healthy credit score also makes it easier to rent an apartment, and it can help you save money on auto insurance. And those with excellent credit will be more likely to be approved for premium credit cards that offer cashback and travel benefits. 

If your score could use some work, explain what your credit score is made of and show you how to increase your credit score quickly by doing 4 things today!

What makes up your credit score

To understand how to increase your credit score fast, you need to know the components of your score and how much each impacts it:

• Payment history 35%: If you make your credit payments (credit cards, loans, mortgage) on time. Even a single late payment can drop your score.

• Utilization 30%: Of your total available credit, how much are you using. The lower, the better; the credit reporting bureaus want to see a utilization below 30% for a healthy score. So if you have $1,000 in total credit limits, you won’t owe more than $300, for example. 

• Length of credit history 15%: How long you’ve had a credit history, the longer, the better. This is tough for new immigrants who will have little to no American credit history.

• Credit types 10%: It’s better to have a mix of credit types, a credit card, installment loan, home loan, etc.

• New credit 10%: If you’ve suddenly opened several credit accounts in a short amount of time, it can make you look like a credit risk, especially if you don’t have a long credit history. Taking out a lot of credit at once can indicate financial problems. 

1. How to increase your credit score by lowering utilization

If you want to know how to improve your credit score fast, the best way to do so is to reduce your utilization. There are two ways to do so; pay down existing debt or open a new credit account (a credit card or a loan). You can also ask your credit card companies to raise your current credit limit. 

2. How to increase your credit score with credit card payments

Paying your credit cards or loans on time are the best things you can do for your credit score, as on-time payments are the most significant factor in your credit score. There is a credit myth (link to not yet published article) that making two payments a month will improve your score by increasing your on-time payments.