If you are wondering how to improve your credit score in 30 days, don’t worry, it is possible. There is no shortcut to building your credit score overnight. It can take several months or even years to raise a good credit score. But there are some ways to improve your credit score that can have a positive impact more quickly.
How Often Is Your Credit Score Updated?
Services that show you your credit score may advertise that they update your score once a month or even every week, but that doesn’t mean the credit report information has necessarily changed. Credit Scores are typically calculated the moment it is requested. The credit bureaus add new information once it’s reported to them, according to Experian, Equifax, and TransUnion.
Most creditors report to credit bureaus once every 30 to 45 days. They may not report to all the three credit bureaus, if they do, they may report to all three at different times. So, if your credit score based on data from Experian has been updated based on recent reporting, that will not be the case with credit scores based on data from one of the other two bureaus.
If you have several accounts with multiple creditors, you may get an updated score many times throughout the month as each report to the bureaus. Also, your credit score changes will be based on the new information that arrives from the creditors.
Fastest Ways to Improve Your Credit Score
Here, some specific things are given to improve your credit score in just 30 days more quickly than others.
- Never Make a Late Payment
The simple way to improve your score is to avoid any late payments. Late payments have a powerful effect on your credit score. But, if you miss a payment by a whole billing cycle, it may drop your credit score by as many as 90 to 110 points.
Since your payment history plays an important role in your score, keeping it in the clear will be helpful to you. Even if it is paying your cellphone bill, your utilities, or your credit cards each month, ensure your payment is on time, every time.
- Decrease Your Credit Utilization
Decrease your credit utilization could be a great way to improve your credit score. The lower credit utilization illustrates that you are responsible for your credit. The lower credit utilization improves your credit score while the higher credit utilization hurts your credit score.
If your credit utilization ratio is higher than 30%, try and decrease it to improve your credit. For instance, if you pay a large amount on your credit card this month, you’ll improve your credit utilization and this will improve your credit score too.
- Increase Your Credit Limit
One of the best ways to improve your credit score is to increase your credit limit. You can increase your credit limit by calling a credit issuer and ask to increase a credit limit. You will know after you apply if the lender approves your credit limit increase. However, it’s necessary to keep your spending at the same level and not to use that new credit. If you increase your spending along with your available credit limit, you cancel out the benefits of any credit utilization ratio.
- Get a Balance Transfer Credit Card or Peer-to-Peer Loan
If credit card debt decreases your finances and your credit score, then you must think about applying for a balance transfer credit card or a peer-to-peer loan. You can use these tools for paying off your existing credit cards. Both of these tools come with a low interest rate, which means you can get out of debt faster.
Still, if you want to improve your credit score in 30 days, only apply if you have a chance to at approval. If you receive approval for a balance transfer credit card, you should keep the following things in mind:
- Pay more than the minimum: Divide your balance by the total number of months you get at no interest and that will be your new minimum to ensure payoff before the promotional rate expires.
- Don’t close your old credit card: This could cause less effect on your credit score. Don’t close your credit card and only use it if you can pay off the balance every month.
- Use Your Old Cards So They Are Not Closed
Another best way to improve your credit score in 30 days is to ensure that your cards are not closed due to inactivity. Closing a credit card account could hurt your credit score. The length of your credit history is the third most important factor that helps to improve your credit score.
Lenders want to see your long-lived relationship with other lenders and that is why this portion is so much important. Don’t be afraid of using old cards, use them only to make small purchases and pay them off the minute you get home. In this way, you can show your transaction history without interest.
- Get a Secured Credit Card
If you don’t have good credit and need to increase your debt limit to improve your score, get a secured credit card. A secured credit card requires a security deposit. If you close or upgrade the card you can get it back. Many credit card issuers check their secured cards every six months to see whether you are ready for an upgrade.
If your credit is really in poor condition, a secured credit card is the best way to improve it – assuming that you have some cash to put down for the security deposit and you can pay off your minimum balance every month.
- Check Your Credit Report for Errors and Remove Them
According to the Federal Trade Commission, few people had errors in at least one of their credit reports. This can be anything from reporting late payments that were not late to fake accounts in the report, which all badly affect your credit score.
So, it is necessary to regularly review your credit reports. You can request one free report for one year from each of the credit bureaus through annualcreditreport.com/. Most important if you find something incorrect or strange, immediately dispute it and remove it.
Factors Affecting your Credit Score
Your FICO score is affected by five factors in your relationship with your creditors. Here are the most common factors that influence your credit scores. Understanding each one and how much they affect your score can help you to improve your credit history.
- Payment History:
Payment history is the most important factor in credit scoring that determines whether you have good or bad credit. Lenders want to be sure that you can pay back your debt on time when they are considering you for new credit. One missed payment can have a bad impact on your score. So, paying off on time every month maintains a positive payment history. Payment history makes up 35% of your FICO score.
- Amount Owed:
The total amount owed is the next most important factor in your credit score. This factor focuses more on your credit utilization ratio than anything else. Your credit utilization ratio is the division of the total revolving credit you are currently using and the total of all your revolving credit limits. This component also considers how close you are to paying off your debts. This factor makes up 30% of your FICO score.
- Length of Credit History:
This factor makes up 15% of your FICO score. This includes the average age of your oldest credit account, the average age of your new credit card account, and the average age of all your accounts. Opening several accounts in a short time may decrease the average of your accounts, so apply for a new credit card when you need it.
- Credit Mix:
People often carry a different portfolio of credit accounts, including a car loan, credit card, student loan, mortgage, or other credit products. Do not apply for a new credit card simply to bolster your credit mix. Credit mix makes up 10% of your FICO score.
- New Credit:
The new credit makes up the last 10% of your FICO score. Virtually when you apply for credit, every time the lender will check your credit based on your credit reports. This may cause your credit score to dip slightly for a short time. If you apply for multiple credit accounts in a short time it could hurt your credit score.
Is there a “Quick Fix” to Repairing Credit?
Unfortunately, there is no “Quick Fix” to improve your credit. Credit repair companies may advertise rapid results, but they can’t do anything about your credit score.
Many times, the credit repair companies promise that they can raise your credit score by disputing information on your credit reports for a fee. If negative information is legal, disputing it will not cause it to be removed. Altogether, it is best to maintain good credit habits and use them to improve your credit history.
It is Tricky to Build and Maintain Good Credit
When you are working to fix your credit is nice and sometimes necessary. However, decreasing your credit utilization by paying down an existing loan, getting a secured credit card, or requesting a credit limit increase on an existing card can provide the fastest credit score boost.
Building and maintaining a good credit score is not that hard to do. Make on-time payments and avoid accruing balances more than 30% of your credit limits. Keep following these best ways to improve your credit score in 30 days. In general, it is best to maintain good credit habits and use them to improve your positive credit history.