How To Boost Your Credit Score In 30 Days
A credit score can drop fast. But you can build it up almost as fast! We’ll show you how to boost your credit score in 30 days.
If you’ve been keeping an eye on your credit score, it might not seem to be moving in the right direction or moving in the right direction fast enough. But with a few key moves, it’s possible to raise your credit score more quickly than you might think. We’ll show you how to boost your credit score in 30 days by paying down debt, decreasing utilization, checking your credit report, and adding on-time payments for free!
Pay down debt
The fastest way to raise your credit score is to pay down debt. This can be tough if you have credit card debt or payday loan debt because of the high-interest rate. But utilization, how much debt you have compared to your total credit limit, is the second most significant factor in your credit score.
If your credit score is good enough, you may qualify for a personal loan with a lower interest rate than your credit cards. You can use the loan to pay off your credit cards. This will boost your credit score quickly, as soon as the creditors report your new balances to the credit bureaus, something they typically do every 30 days.
Yes, you still have debt in the form of the loan, but the debt is less expensive because the interest rate is lower, and interest rates are the cost of debt.
Decrease utilization
Yes, we covered this above, but there is more than one way to decrease utilization! If you take out a new line of credit, a credit card, or a personal loan, your total credit limit will increase, decreasing utilization.
You can also call your credit card company and ask them to raise your credit limit. If you have a history of on-time payments and your balances aren’t too high, they may be willing to do so.
Remove negative information from your credit score
There are three main credit bureaus, Equifax, Experian, and TransUnion. These bureaus compile your credit history into your credit report, which is then used to calculate your credit score. Each has a propriety formula used to calculate scores which is why you’ll see slightly different credit scores (different numbers but still in the same range) depending on where you look.
Each report can also have different information, and some of that information can be incorrect. Perhaps you paid off a debt, but the creditor never reported it. Or someone with a similar name, date of birth, or Social Security number to yours has their information listed on your credit report.
Once a year, you can get a free credit report from each of the bureaus. Request your report and look for incorrect information. If you find some, report it to the credit bureau along with proof that the information is incorrect, and they must legally remove it. Removing erroneous information can boost your credit score.
Add on-time payments
Payment history, whether you pay your bills on time or not, is the most significant factor in your credit score. Having more on-time payments can help boost your credit score. One way to do that is with Experian Boost. The service reports on-time payments for things that aren’t typically reported to the credit bureaus, including phone bills, utilities, and streaming services.
Adding additional on-time payments does improve your credit score, but it can take several months of on-time payments to see a difference.
Let Upwardli help
At Upwardli, we understand how important credit is to American financial life. We have the tools and resources you need to build and improve your credit history. If you want to boost your credit score, Upwardli is here to help!
