How To Improve Credit Score in 30 Days
A high credit score opens doors to loan approvals and attractive interest rates. While there is no overnight solution to improving your FICO rating, you can do a few practical things in a month to create a positive impact. These include paying bills and balances on time, disputing credit report errors, becoming an authorized user, and more. Let’s explore these strategies and discuss what affects your creditworthiness.
How are credit scores calculated?
Knowing what affects your credit score can help you understand better how to improve your rating. A widely used model is the Beacon credit score, which is influenced by the following criteria:
- Payment History
- Amounts Owed
- Length of Credit History
- Credit Mix
- New Credit
What are the ways to boost your credit score?
You can increase your credit score using good financial management practices. Typically, boosting a lower score is easier than a higher one because minor changes can cause significant rating improvements. Now, let’s discuss some ways on how to improve credit score in 30 days.
- Pay your bills on time.
Your payment history affects your credit score. So, settle all your bills on time to help maintain and raise your score. Set up automatic payments or reminders to ensure you never miss a due date. - Reduce credit card balances.
Another factor influencing your credit score is the amount you owe, which is typically determined by your credit utilization ratio. This measures how much of your available credit you are using. Aim to keep your credit utilization below 30%. If your balances are higher, focus on paying down your credit card debt as much as possible. - Dispute inaccuracies on your credit report.
Inaccurate information on your credit report can harm your score, so you should correct any errors immediately. Regularly review your credit report from the credit bureaus. If you find any errors, dispute them. - Become an authorized user.
If a relative has a high-limit, well-managed credit card account, consider asking them to add you as an authorized user. Their entire account history gets incorporated into your credit report, potentially boosting your score. - Maintain a healthy credit history.
How long you’ve used your credit card and your accounts’ average age affect your credit score. So, avoid closing old credit accounts and opening new ones within a short period.
Build a Good Credit Score With Sharefax Credit Union
At Sharefax Credit Union, we empower our members to achieve a good credit score through our financial products and services. Enjoy the benefits of low-APR credit cards, loans with favorable terms, and minimal fees for seamless financial management. Additionally, access our valuable financial education resources to enhance your budgeting skills. Join our community, and start building your credit union credit score!