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 isnât where you want it to be⊠Donât 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 youâve neglected that little three-digit number â or have struggled to improve it â weâve 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.
50 Effortless Methods to Boost Your Income This Week
If you needed extra money, like, yesterday, youâve come to the right spot.
Our team has compiled a list of creative ways you can fatten your bank account this week.
This is a long list, so don't get overwhelmed. Go ahead and start now, but be sure to bookmark this post so you can easily return later. We'll keep it updated as offers changes or expire.
Check it out!
To keep a closer eye on your credit, sign up for Credit Sesame to get your credit score and âcredit report cardâ for free. It breaks down exactly whatâs on your credit report in laymanâs 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 âunpaidâ 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 heâs 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.
đ Don't Miss:
Get Paid $225/Month While Watching Movie Previews
2. Consolidate Your Debt â and Lower Your Interest Rate
A lot of us are being crushed by credit card interest rates north of 20%. If youâre 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 youâre worried about missing one of your monthly payments, set a recurring reminder in your phone. Or, if youâre 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 wonât kill your credit score. In fact, borrowing money can actually help it â as long as youâre making payments on time. If you donât? You risk the account going into collections.
If youâve 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 youâre using versus your limit. For example, if your credit card has a credit limit of $8,000 and youâve 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 wonât tempt you to spend more money).
To keep your credit utilization rate low â and your credit score high âkeep your spending down and pay your credit card bills as soon as possible.
When It Comes to Credit ScoresâŠ
![Want to Raise Your Credit Score in the Next 30 Days? Take These 4 Steps (1) Want to Raise Your Credit Score in the Next 30 Days? Take These 4 Steps (1)](https://i0.wp.com/cdn.thepennyhoarder.com/wp-content/uploads/2019/04/22144446/credit_sesame_mortgage_013.jpg)
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 âcredit report cardâ for free from Credit Sesame will help break down exactly whatâs on your credit report in laymanâs 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, itâs more realistic to expect changes to appear on your report in about 30 days. Additionally, if youâre 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 5 Dumbest Things We Keep Spending Too Much Money On
You've done what you can to cut back your spending.You brew coffee at home, you donât walk into Target and you refuse to order avocado toast. (Can you sense my millennial sarcasm there?)
You brew coffee at home, you donât walk into Target and you refuse to order avocado toast. But no matter how cognizant you are of your spending habits, youâre still stuck with those inescapable monthly bills.
You know which ones weâre talking about: rent, utilities, cell phone bill, insurance, groceriesâŠ
Ready to stop paying them? Follow these movesâŠ
Ready to stop worrying about money?
Get the Penny Hoarder Daily
Privacy Policy