Your credit score matters. Lenders take one look at your score and determine your mortgage or car loan rates, whether to approve your apartment or credit card application – and even whether or not to hire you for employment.
Given the impact of your score and the urgency of your life situation (that perfect house isn’t going to be on the market forever), there is a big incentive to improve your credit score quickly.
Here is how to improve your credit score in 30 days:
Pay down revolving balances to less than 30%
As we learned in our blog post about what makes up your FICO score, your aggregate debt and the amounts owed on all credit cards and all installment accounts make up about 30% of your credit score. The most common revolving balances are amounts owed on your credit cards, and there is a big difference between the revolving balances of someone with a 780 credit score and a 680 credit score.
A person with a 680 credit score has revolving balances of 40%-50% of their credit card limits.
A person with a 780 credit score has revolving balances of 15%-25% of their credit card limits.
Don’t worry about paying installment accounts. They have a low impact on your score. Instead, the main difference between two people with a 680 and 780 credit score is the percentage of revolving balances. Pay your revolving balances off if possible. At the very least, aim to pay those balances down to less than 30%. This will improve your credit score in 30 days or less.
Remove a recent late payment
A single late payment can drop your credit score by 60 to 110 points. Yikes!
If you had a 680 credit score, a 30 day late payment can drop your score by 60 to 80 points (and 70 to 90 points if you have a 90 day late payment).
If you had a 780 credit score, a 30 day late payment can drop you score by 90 to 110 points (and 105 to 135 points if you have a 90 day late payment).
The difference between a person with a 780 score and a 680 score is that the 780 score has no late payments, while a person with the 680 may have a 30 day late payment within the last year, or a 90 day late payment 2 years ago.
Removing a late payment will take persistence. There are a couple ways to request a removal. The most common and effective way is to call the original creditor and ask for a goodwill adjustment. If they resist, you can even negotiate the removal of the late payment by agreeing to sign up for automatic payments. For other late payments, you can file a dispute against the late payment for inaccuracy.
Remove a collection account
People with a 780 credit score do not have any collections or other major derogatory items on their credit report. If you do have a collection account reporting on your credit report, your goal is to get the collection deleted.
Do NOT just pay a collection. A paid collection usually doesn’t help improve your credit score! Instead, negotiate a “pay for delete” IN WRITING with the collector. Only when you have a written agreement should you pay a collection account, and then work on getting the account deleted.
Raise your credit limits
Call your credit card companies and request a raise to your credit limits. Ask if they can raise your credit limit with a soft pull of your credit, since a hard inquiry will appear under the “New Credit” category of your FICO score. If you can negotiate an increase of your credit limit with a soft inquiry, then you will instantly decrease your revolving balance ratio (revolving balance divided by your credit card limits).
If you have low balances and a good payment history, then your chances of successfully executing this tactic will increase.
Charge small amounts to inactive credit cards
It’s easy to neglect older credit cards when you have a primary credit card that you use every day. If your credit cards haven’t had activity in the last 6 months, charge a small amount to the credit card. Creditors want to see that you are using the credit available to you (and paying the balances off responsibly). Charging a small amount and paying off the balance shows that you have a different mix of credit in use, which makes up a portion of your FICO score.
No credit equals bad credit. You need credit accounts to be reporting to your credit report in order to improve your credit score. You must have at least 1 open revolving account, even if you have no negative accounts. In addition, this revolving credit account must have been used in the last 6 months.
There are a couple of ways to get credit to improve your credit score in 30 days. One way is opening a secured credit card, with a preference being given to a card that reports as an unsecured card with your credit limit to all 3 bureaus.
The other way is to add yourself to a seasoned trade line. Someone with good credit history can add you as a co-signer, where you are equally responsible for all debt. Or, they can add you as an authorized user, where you are not responsible for any of the debt – and Mortgage FICO 5 will count the history as yours.
If you seriously need to improve your credit score in 30 days, you will benefit by enlisting the help of a credit repair company like Go Clean Credit. To learn more about our credit repair programs, please .
No matter what your situation, Go Clean Credit has a solution. We have many credit repair programs that are available to help you overcome your credit situation and place you back on the path to financial success. Real credit restoration is not a once size fits all model and we tailor your needs to the right program, but most people can start for just $99 per month.
We have fixed price programs that get you back on track in as little as 5 months, debt resolution solutions, programs geared toward people who have had recent short sales or foreclosures and many others. Help is just a free phone call away or you can fill out an appointment request. to schedule a free consultation today.