Some of the links in this post are from our sponsors. We provide you with accurate, reliable information. Learn more about how we make money and select our advertising partners.
Love it or hate it, your credit score affects some of your biggest life decisions: buying a car, owning a home or, really, making any big purchase. Heck, it can even affect what you pay on your monthly bills.
But maybe your credit score isn’t where you want it to be… Don’t worry. There are some simple steps you can take to improve it within the next 30 days.
4 Simple and Quick Ways to Improve Your Credit Score
The factors that determine your credit score include: 35% payment history, 30% accounts owed, 15% length of credit history, 10% new credit and 10% credit mix.
In case you’ve neglected that little three-digit number — or have struggled to improve it — we’ve rounded up some of the simplest ways to improve your credit score.
So the goal here is to make these simple moves today, so you can see improvements in your score tomorrow (or, like, a month from now).
1. Remove Errors From Your Credit Report
Did you know your credit score could be inaccurate? One out of five credit reports has an error, according to a study by the Federal Trade Commission.
7 Ways to Make Money if You Hate People
Do you avoid people too? In the past, there was almost no way around working with people if you wanted to earn a living, but things have changed.
Our team has compiled a list of creative ways you can fatten your bank account this month, without having to put up with people.
Enough small talk. Here are some ways to earn extra cash, without all of the social stuff.
To keep a closer eye on your credit, sign up for Credit Sesame to get your credit score and “credit report card” for free. It breaks down exactly what’s on your credit report in layman’s terms, how it affects your score and how to address it.
Because it simplifies everything, you should be able to spot any errors. For instance, if you find an “unpaid” credit card balance that you know you paid or a bill in collections you know never existed, you can dispute the incorrect information and raise your credit score.
James Cooper, a motivational speaker, raised his credit score 277 points in six months using Credit Sesame. Now he talks to high school students about the importance of having good credit and uses what he’s learned through Credit Sesame as a blueprint for his lessons.
Like Cooper,60% of Credit Sesame members see an increase in their credit score; 50% see at least a 10-point increase and 20% see at least a 50-point increase after 180 days.
📌 Don't Miss:
Get Paid $225/Month While Watching Movie Previews
2. Consolidate Your Debt — and Lower Your Interest Rate
A lot of us are being crushed by credit card interest rates north of 20%. If you’re in that boat, consolidation and refinancing might be worth a look.
A good resource is Fiona, a search engine for financial services, which can help match you with the right personal loan to meet your needs.
Fiona searches the top online lenders to match you with a personalized loan offer in less than 60 seconds. If your credit score is at least 620, its platform can help you borrow up to $100,000 (no collateral needed) with fixed rates starting at 3.84% and terms from 24 to 84 months.
Pro Tip
If you’re worried about missing one of your monthly payments, set a recurring reminder in your phone. Or, if you’re not worried about overdrafting, set your bills to autopay.
Now you can finally stop holding a grudge against that friend who thought a Mexico wedding was a good idea.
3. Let This Company Handle Debt Collectors
Debt won’t kill your credit score. In fact, borrowing money can actually help it — as long as you’re making payments on time. If you don’t? You risk the account going into collections.
If you’ve been getting phone calls and mail from debt collectors, look into Collection Shield 360, a free credit repair service that helps people clean up their credit reports and deal with collection agencies. It will contact your debt collectors to have negative marks on your credit report removed, among other steps to improving your credit.
The service helped 31-year-old server Tabatha Pankop deal with lingering bills from T-Mobile, Bright House Networks and Verizon. Her credit score jumped up nearly 200 points in just a few months, enabling her to move into a better apartment and start looking for a townhouse to buy.
4. Use the Right Amount of Credit
After your payment history, your credit-utilization ratio has the highest impact on your credit score; it makes up 30% of it.
Your credit utilization refers to the amount of credit you’re using versus your limit. For example, if your credit card has a credit limit of $8,000 and you’ve racked up a $2,000 bill, your credit utilization rate is 25%.
The goal is to stay under 30%, but the lower, the better.
Pro Tip
You can call your credit card company and ask to increase your credit limit (as long as that won’t tempt you to spend more money).
To keep your credit utilization rate low — and your credit score high —keep your spending down and pay your credit card bills as soon as possible.
When It Comes to Credit Scores…
There are a number of ways you can improve your credit score, but as long as you simply understand what impacts your score, you can determine just how you can improve it.
Getting your credit score and “credit report card” for free from Credit Sesame will help break down exactly what’s on your credit report in layman’s terms, how it affects your score and how you might address it.
And remember: Your credit score can update as frequently as every day; however, it’s more realistic to expect changes to appear on your report in about 30 days. Additionally, if you’re using Credit Sesame, it shows your updated score every 30 days.
The key? Be patient, but get to work today, so you can start seeing those improvements in 30 days.
Credit Sesame does not guarantee any of these results, and some may even see a decrease in their credit score. Any score improvement is the result of many factors, including paying bills on time, keeping credit balances low, avoiding unnecessary inquiries, appropriate financial planning and developing better credit habits.
Carson Kohler ([emailprotected]) is a staff writer at The Penny Hoarder.
The 8 Best Ways to Earn a Passive Income in 2023
You’ve probably heard the term passive income. It sounds appealing right?
According to the definition of passive, it would mean you’re earning income without participating or having to do anything at all. Free money? Sign me up!
If you’re interested in establishing a flow of passive income, here’s a guide to understanding the term and getting started.
Check it out here!
Ready to stop worrying about money?
Get the Penny Hoarder Daily
Privacy Policy