Whether it is about applying for a new loan or negotiating better terms with the lender, the lender’s first consideration is your credit score. A good credit score is one of the best ways to demonstrate yourself as a responsible borrower with good repayment abilities. It also determines your ability to get loans or other lines of credit, avail the same at lower interest rates, better loan or credit card terms, increased credit limit, etc.
While credit score ranges from 300 to 900, lending institutions expect the borrower to have a score of more than 700. Before applying for a credit, ensure to check your credit score online. Duefactory.com can provide you with a free credit report. If you have a poor credit score and are looking for the best ways to improve the same in 30 days, then we are here to help you.
Credit Score Building in 30 Days
Have you been thinking, How to Improve Credit Score in 30 Days? “Though there is no magic wand to increase your credit score overnight, here are the top ways that can lead to a quick credit score improvement.
1. Pay Your Outstanding Bills
Your repayment history impacts your credit score the most. If you have a loan or use a credit card, you must first pay the EMIs or credit card bills for quick credit building. Ensure to pay the same in full and before the due date. Delaying or missing the payments impacts your credit score negatively and compromises your creditworthiness. If you make the payments a few days before the due date, it will prove your solvency and may also increase your credit limit. This will instantly boost your credit score.
So, the most vital strategy to improve your credit score in 30 days is to immediately pay your loan EMIs and credit card bills.
2. Check Errors in the Credit Report
When did you check your credit report last? Is your credit score poor due to the error in the credit report? Get your credit report from the credit bureaus and check all the detailed records of your borrowing and repayment history. Check the details like credit utilization, credit types, account balance, credit length, closed loan accounts, pending debts, payment history, amount due, etc. Look for any inaccuracy or ambiguity in the report. You must take immediate action if you notice an error like a late payment entry, which you paid on time, or an unknown account in your name. You can dispute the same in simple steps.
Disputing the inaccuracies and correcting your credit score will lift your credit score substantially. Write to the credit bureau and highlight the errors. Support your claim with documents. Due Factory, the credit counseling company, can help you in this regard.
3. Get a New Credit Card
One of the tips on how to raise credit score in 30 days is getting a new credit card. This is because the new credit card will also come with a credit limit, increasing your overall credit limit and lowering the credit utilization ratio. This way, your credit score will go up.
It is not good for your credit score if you never used a credit card or you don’t have a loan and hence have a zero credit history. The lenders want to see how much credit you have used and how you have handled your financial liabilities. Having a credit card and managing the same responsibly will make it easier for the credit companies to trust and evaluate you and increase your credit score.
4. Lower Your Credit Usage
Though credit company allows you to make purchases until your card’s limit, you must remember never to use all your credit limits. The credit limit is based on your eligibility, credit score, repayment history, and professional stability. Using less than 30% of your available credit limit will make your credit utilization ratio low and credit score good.
5. Increase your Credit Limit
One of the answers to how to improve my credit score in 30 days is by increasing your credit limit. You can also request your lender to increase your credit card limit. However, be informed that the credit card issuers will entertain your request only if you have a consistent repayment history. Some credit companies provide promotional offers with enhanced credit limits to their reliable credit card users. Increasing your credit limit will lower your credit utilization ratio and boost your credit score.
6. Pay Bills using a Personal Loan Account.
Pay your credit card debt off from a personal loan to make it zero and increase credit utilization. Using a personal loan to pay your high-interest credit card outstanding will give you a set monthly payment period. It will lower your credit utilization as a personal loan is installment credit and not revolving credit like credit cards. Having a personal loan and a credit card can improve your credit mix, which improves your credit score.
7. Limit Loan Application
Your credit score lowers when you apply for a loan. When you submit loan applications frequently, the lenders initiate a ‘hard inquiry’., which decreases the credit score. Also, multiple applications show your frenzy for additional debt, which is bad for creditworthiness.
Wrapping Up
Did you get the answers to how can I boost my credit score in 30 days? A high credit score exhibits your consistent repayments and good financial standing. However, do not expect to rebuild a credit score in a few days. It takes time and consistent efforts like instant bill payment, lower credit utilization, get a new credit card, increase credit card limit, dispute errors, etc. These actions will show considerable improvement in your credit score within a month. Taking the professional help of defactory.com will catalyze your efforts and speed up your credit-building efforts.
Disclaimer: This article provides a general guide to the subject matter. You should seek specialist advice about your specific circumstances.
Frequently Asked Questions
1. Why is it important to improve your credit score?
Ans. The credit score is an important 3-digit number that is a yardstick for the lender to evaluate your credit applications. This score determines your creditworthiness and ability to pay the loan back.
2. Can I boost my credit score in just 30 days?
Ans. Yes, you can. You can achieve a good credit score in 30 days with the right strategies, dedication, and planning. Taking the professional help of defactory.com will catalyze your efforts and speed up your credit-building efforts.
3. How can I increase my credit score in 30 days?
Ans. If you are wondering, how to boost my credit score in 30 days, then here are the best ways. Paying your credit bills or loan EMIs on time, applying for a new credit card, requesting an increase in the credit limit, lowering credit utilization, etc., are some tips to boost your credit score in 30 days.
4. How does the credit utilization ratio impact credit score?
Ans. The credit utilization ratio is critical in determining your credit score. A higher CUR will lower your credit score as it exhibits your reliance on credit for managing your financial transactions. However, a low credit utilization ratio can improve your credit score quickly.
5. Will the credit card company increase my credit limit?
Ans. If you have paid your dues on time and maintained a low credit utilization, you can request the company to increase your credit card limit.