If you’re looking to raise your credit score 40 points fast, there are a few things you can do. Check out this blog post to learn more!
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Check your credit report for errors
One of the best ways to improve your credit score is to remove any errors or inaccurate information from your credit report. You can do this by requesting a free copy of your report from each of the three major credit reporting agencies (Equifax, Experian and TransUnion) and disputing any errors that you find.
It’s important to dispute any errors that you find on your report as soon as possible, as errors can lower your credit score and result in you paying higher interest rates on loans and credit cards.
Set up payment reminders
You can set up payment reminders through your financial institution or credit card issuer. This way, you’ll never miss a payment and you’ll avoid late fees. Additionally, many credit card issuers now offer financial tools that allow you to track your spending and stay within your budget. These tools can help you make informed choices about your spending and help you keep your debt under control.
Pay down your credit card balances
Your credit utilization ratio is one of the most important factors in your credit score—it accounts for 30% of your FICO® Score☉ . That means if you have a $10,000 credit limit and a $2,000 balance, your credit utilization ratio is 20%. The lower your balances are, relative to your credit limits, the higher your credit score will be.
There are a couple different ways you can tackle your credit card balances. You can either paying them off completely or making a large payment that brings each balance below 30% of the card’s limit. If you can get all of your revolving balances below 30%, you’ll see a significant boost in your scores. And don’t forget to keep making at least the minimum required payment on time each month!
Maintain a good credit history
One of the best ways to improve your credit score is to simply maintain a good credit history. That means paying your bills on time, every time. It also means using credit responsibly, which means not maxing out your credit cards or opening too many lines of credit at once. If you have a good credit history, your score will naturally go up over time.
Another great way to improve your score is to take advantage of credit-building tools, like secured credit cards. These are designed for people who are trying to build or improve their credit, and they work by having you put down a deposit that serves as collateral for the card. Then, you use the card like you would any other credit card, making sure to make your payments on time and in full each month. After a period of good behavior (usually 12-18 months), you’ll likely be eligible for an unsecured card, which doesn’t require a deposit.
If you have bad credit, you can still get a loan or line of credit from a financial institution, but you’ll likely pay a higher interest rate than someone with good credit.3 This is because lenders see people with bad credit as a higher risk for defaulting on their loans.
There are also some things you should avoid doing if you want to improve your score. These include closing old lines of credit, opening new lines of credit too often, and missing payments.
Use a credit monitoring service
There are a number of companies that offer credit monitoring services, and they can be a helpful way to keep track of your credit score. These services will monitor your credit report for changes and alert you if anything looks suspicious. They can also help you identify errors that may be dragging down your score.
Most credit monitoring services will charge a monthly fee, but some may offer free trials or other introductory offers. Be sure to read the fine print before signing up for anything, so you know what you’re getting into.
There are also a number of free credit monitoring services available, though these may not offer all the same features as paid services. Credit Karma and NerdWallet both offer free credit scores, for example, and both will send you alerts if there are any changes to your report.