A few years ago my credit score flat out sucked. It was in the low 500’s, and I couldn’t qualify for a $500 personal loan. I was shocked. I didn’t know it was that bad. That day I took a look in the mirror and decided to get serious about getting my credit right. By August 2015. My credit score had risen by 168 points. I was able to do that without paying for help. You can do the same thing as well. Today, I want to share with you some tips on how to improve your credit score in 30 days.
Pay your bills on time
The first thing that you need to do is to make sure that you pay your bills on time. Your payment history is 35% of your credit score. That’s a little more than a third. When I was younger, I paid my credit cards and student loans late. I had a very lackadaisical attitude. That’s one of the main reasons that my credit score was so bad. As soon as I started making payments on time, it began to rise. Yours will do the same. If you’re horrible at remembering your payment due dates put them in Google calendar or use a program like Mint. Mint sends out emails when you are close to a payment due date.
Having late payments on your credit report can put a huge dent in your credit score. It could take years for your credit to recover. This is not a situation that you want to be in.
Stop using your credit cards
If you’re serious about wondering how to improve your credit score in 30 days, you should stop using your credit cards for a while. Your credit utilization is 30 percent of your credit score. Credit utilization is the ratio of your credit card balances to their credit limits. At one point my credit utilization ratio was at 99%. That was horrible. I’m currently at 12% and will be lower than that within a few months. I made a couple of mistakes and ended up using my credit card a few times last year. The good thing is that in most cases, I was able to pay the balance off within a couple of weeks. If you still want to use credit cards, make sure that you pay the balance off each month.
I used to think that I would be the person that would never use my credit card after it was paid off. Things have changed for me over the last couple of years. There is nothing wrong with using your credit cards if you do it correctly. It just depends on the kind of person that you are. If you are disciplined enough to pay the balance each month, by all means, use them. If you struggle a little, consider not using them.
Pay down debt
I don’t care what anyone says, but debt is the enemy. I don’t want it, that’s why I’m working hard to eliminate it. Paying down your debt (credit cards and revolving credit) will help your score rise. Do what you have to do to lower it. Come up with a debt repayment plan and get to work. You may have to sacrifice some things, but at the end of the day, it will be worth it. I’m currently applying $1000 to my debt each month. That amount will continue to grow as my money keeps increasing. If you don’t make enough, don’t worry about it. The next tip will help you.
Make extra money to pay the debt
Next up on the ways to improve your credit score in 30 days is to make extra money. Making extra money so that you can apply it to the debt is the cheat code. It’s one of the ways that you can get ahead of the game. Interest payments are not a game. That’s part of the reason my student loan debt is where it’s at now. I pretty much ignored them and made the very minimum payments to them. Because of that, the balances have increased by thousands over the years. I don’t want that to happen to you. Adding extra money to your debt will make it a thing of the past sooner than later. Below are a few ways for you to make extra money:
- Sell items on eBay
- Design logos
- Sell something on Etsy
- Create a course
- Drive for Uber
- Get a part-time job
- Become a freelancer
- Do yardwork for people
There is something out there for you. You just have to take some time to try the different side hustles. For even more ideas, check out this post I wrote. It has over 40 things that you can try.
The final way to improve your credit score in 30 days is to be smart about the situation. Check your credit score a few times each year. I like using Credit Sesame. It shows me my score. It gives me a credit and debt analysis. Did I mention that it’s free to sign up for? Credit Sesame also gives you other tips on how to help you raise your credit.
Another way to be smart is to watch how you’re using your credit card. Don’t just go crazy and swipe for every transaction. Try to just use it for emergencies if you can. If you don’t, the balance will get high quickly. As I stated earlier, try to pay it off each month if that’s feasible for you. By doing that you won’t have to worry about that damn interest. If you know that you will get into trouble with the credit card, stop using it. If you have to cut it up, do it.
As you’ve just read, those were five ways that you can improve your credit score in 30 days. Depending on your situation, it may take a little longer for your credit score to rise, but don’t give up. It actually took a couple of months for my score to rise, but it did. Once it started, it didn’t stop for a while. I know that you can do the same thing. You just have to be serious about it and have some discipline.