How Can I Raise My Credit Score in 30 Days?
Do you or someone you know need to raise your credit score quickly? Issues with low credit ratings are incredibly common and can have a drastic effect on the life that you and your family live. Low credit scores can lead to troubles getting loans and mortgages from banks, which can seriously impede the rate at which you progress through your life goals. Having a low credit score can not only lead to lenders and banks denying you credit, but it can also cause the interest rate at which you receive a credit to increase drastically. Having high-interest rates can begin to spiral into a negative feedback loop, which is the last thing someone who already has a low credit rating needs. Many people realize they have a problem with low credit ratings and don't know what course of action they should take. Don't wait until the problem gets out of control. There are steps you can take right now to increase your credit rating. Below are some ways that you can increase your credit rating quickly!
Get your credit score!
The first step to increasing your credit score is knowing your credit score. There is a multitude of ways to find out your credit rating online. Some services in Canada are Equifax Canada and TransUnion Canada. All that is required to determine your credit rating is some basic personal information and a little patience. Both services also provide immediate credit scores for a small fee.
Always pay off your credit card bill in full!
Having a credit card can be extremely convenient and allow you to pursue many financial endeavors that would be otherwise unavailable or inaccessible. Regularly making payments to your credit card is a great way to go about improving your score quickly. If you are able to use your credit card and pay it off in a timely fashion (before the payments are due) then it can be a powerful tool to help bolster your credit rating.
Increase your credit limit
By increasing your credit limit many people would think this just leads to the potential to overspend even more. Don't fall into that trap! Having a higher credit limit will make you look more appealing to creditors (as long as you make your payments!). If you have a high credit limit, but maintain a low balance (relative to your limit) then it will be reflected in a higher credit rating.
Don't pay late
By making payments late, you allow interest charges to be placed on your credit card. This not only costs you money, but has a negative effect on your credit score. Making payments on time shows creditors that you are reliable and capable of paying off your debts. There are different strategies that you can take to make sure you don't pay late. Setting up automatic payments can help ensure that all bills get paid on time. Using a phone app or computer can help make paying more accessible.
It can be easy to overspend on your credit card, especially in the era or tap technology, when consumers no longer even need to input their pin to make a purchase. Overspending on items you don't need can have a negative effect on your overall financial situation, which in turn affects your credit score. In order to avoid this, limit your credit card purchases to essentials, such as gas, food, travel expenses, work expenses. This was you have a somewhat predictable idea of how much you will spend per month, and be able to budget regular payments to your credit card. In order to increase your credit score quickly, it is essential that you maintain a low balance (around 30%) of your credit limit. This will also give you some headroom if you need to put a large purchase on credit, or if any emergency pops up where you must rely on credit to make ends meet.
Many parents feel that their children might not be responsible enough for a credit card, or that it might not be necessary for them to have. However, allowing your child to get a credit card can actually be beneficial to their credit rating in the long run. By using and making regular payments for a longer period of time, your credit score improves. People who begin using credit responsibly early on have an easier time applying for things like mortgages and loans later in life, because they have a documented history of responsible use.
Implementing these strategies will allow you to improve and maintain your credit score both in the short and long term. The faster you take action, the faster you can begin to take control of your credit rating and get back to living your life!