7 Ways to Boost Your Credit Score in 30 Days

Need to Boost Your Credit Fast? If You Are Suffering From Bad Credit History or a Low Credit Score, Here Are 7 Recommended Ways to Increase Your Score in 30 Days!

 

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*Connect with us on Facebook: TyeStyle Credit Solutions LLC
*Follow The Credit Lady on Instagram: @TyeStyleCreditLady

 

 

In the modern financial system, the majority of individuals rely heavily on their personal credit score to create a better future for themselves and their families. In the case of younger people, a good credit score can be used to leverage lower interest rates for a new car loan, or used in consideration for an apartment rental application. For others, it could mean the difference in being funded for a lifelong business or entrepreneurial dream, or getting loans to invest in big ticket purchases. For most everyday people, a good credit score can allow you to obtain great credit cards from top tier banks and live a better quality of life.  

In spite of the importance of maintaining a good credit score and solid credit history, many people still struggle with bad credit scores, flawed credit history and, sometimes, being unintentionally ignorant against a highly volatile credit rating system, We at Tyestyle Credit Solutions offer to inform and educate the 7 best practice methods to quickly boost your credit score and fix your credit history—in as little as 30 days. These solutions, which are 100% legal but often overlooked, can often make or break your chances of building a better future.    

  1.     Remove Negative Items Off Of Your Credit Report

 The first recommended step to boost your credit score quickly is by making every effort to remove negative items off of your credit report and history. This process can be easier than one would anticipate, and can start with something as simple as a google search!  The first part of this involves running your credit report—for free, and with no effect to your credit. There are multiple websites which actually offer free credit report checks, and can be found easily through an easy google search.

You are also entitled to a free credit report every year from annualcreditreport.com. This report is fully extensive and will give you vast insight into your credit history and the fine details.  Next, after obtaining the report, we advise you to go through and closely examine your credit report to find out exactly what is impacting your score in a negative way.  Late Payments: This is one of the most common reasons for bad credit scores. A late payment is a payment made past the agreed upon due date or deadline from the lender. This negative mark will stay on your credit report for seven years.  Lenders typically report late payments to the credit reporting agencies once they are more than 30 days late.

For late payments under 30 days, credit card companies may simply charge you a late fee (which they may often wave with a polite phone call request). After those 30 days, however, the chances are high that it will be reported on your credit report, and negatively impact your score. Also note, that the longer the payment is late (for example 30 days late, 60 days, 90 days) the harder it will impact your score. The more recent the late payment happened, the more it will impact your score. So if a late payment happened a few months ago, it will impact your score more than one that happened five years ago.

The number of late payments also has a big role in your credit scoring—the more late payments you have, the worse it is for your score!   The first step in handling late payments begins with paying off those late payments as soon as possible, even if they are already late. Otherwise, it will only get worse. That being said, having a 30 day late payment is much better than having a 90 day late payment. Secondly, it’s also a good idea to try to negotiate the terms of the debt, and see if the lender might adjust your account back to current. Reach out to them if you are having a difficult time making payments, and see if you can work out a customized payment plan. In reality, late payments are notorious for being charged off after a certain point and the lender subsequently loses a lot of money.

Therefore, the lender would rather get something rather than nothing, and renegotiate the terms of credit rather than call it a total loss.   Finally, if you’ve already paid off the debt in full and it is still appearing on your profile as a late payment, it’s worth it to call them and request if they can remove it as a courtesy. If all else fails, look for inconsistencies, errors or mistakes in the credit report and late payment, and dispute them. If you ever find any inaccuracies in the payment due, the payment date, etc. If you challenge the inaccuracy and the company cannot prove that all evidence is indeed correct, they will instead go and remove it. Doing this can have a huge positive impact on your financial profile and boost your credit score in a few weeks to a few months.   

  1. Accounts In Collections And Debt Validation

 An account in collections is a severe negative mark which occurs when a payment is so late, the lender gives up on expecting the remainder of the account balance and writes it off as a total loss. They then sell that delinquent debt to a third-party collections agency who purchases the debt for pennies on the dollar. This typically happens when you are over 150 days late on the payment. This also remains on your credit report for seven years.  The first solution is to try to dispute the account collections claim if you see any errors or inaccuracies. If you think that there is an error on the credit reporting side and that you paid the debt off—yet it’s till showing on your report—you can dispute  the claim. After you file the dispute, they have 30 days to respond. If you feel there is an error on the debt collector’s side, you can ask that they validate the debt to prove that it is indeed you who owes the money.

Now, they have to provide the validity of the debt being yours, and if they can’t do that, it is removed. Debts like this are bought and sold multiple times over the course of 7 years, and there is usually a good chance of finding an error along the way that you can seize and take advantage of. Get it removed and help boost your credit score.  Sometimes you can also negotiate to pay off the debt, in exchange for removing the late payment from your credit report. This option is a grey area, since technically if the debt is true, they should be reporting it as is. But they also want their money and may agree to remove it if you pay them. Debt collectors actually often pay a small fraction of what your actual debt is, and then try to profit anything above that. For example: if your total debt account was $10,000 and it goes to collections, maybe that debt collector purchased it for $1,000 and anything they make above that is profit.

Therefore, you could even negotiate down a $10,000 debt to a $2,000 payoff and get it removed, since these collections agencies would rather get something rather than nothing (or the bare minimum).  Paying off a debt in collections also doesn’t necessarily improve your credit score; even though it shows up as paid, it still shows up on your credit report as an account gone to collections and will remain for 7 years. In this instance, if you’ve paid off something in collections, you can file a dispute with the credit reporting agency to validate the debt from the collections company. At this point, the debt collector has no real incentive to respond to the bureaus, and in most instances, don’t respond. At this point, the debt is removed within 30 days.  Foreclosures Or Bankruptcies: Check your credit history report for foreclosures or bankruptcies.

Usually, you would probably already know about this, but occasionally with identify theft and other such issues, they could be staining your credit profile.  This type of derogatory mark stays on your credit report for 7-10 years, and removal is very difficult. The best solution process is to find and dispute any errors or inaccuracies which may be on the report. Also, if it stays on your credit report for longer than 7-10 years, dispute it and you can get it removed. Otherwise, this mark is typically nearly impossible to remove in any other circumstance—and you may have to just work around it by improving everything else.   

  1. Increase Your Credit Lines

 Not Having Enough Credit: If you are credit invisible/have no credit or are just beginning to build your score up for the first time, there’s really not that much information to begin with. This mean you probably won’t have a high score right away.  The next major way to help boost your credit score and enhance your profile is by increasing the number of credit lines you have open, or add more credit card accounts to your overall profile.  

Start building a credit history—and the only real way to do that is by going and getting credit! This begins with maintaining 3-4 lines of open credit at all times, as a best   practice towards boosting your credit. The best method is by going to a bank such as Chase, Bank of America, or Wells Fargo—a tier one bank—and explaining your situation. Let them know you don’t have a credit history, and you would like to get approved on a credit card.

Request options for cards you are most certain to get approved on, as you are simply trying to get approved for your initial credit line(s) and start building a credit history.  Tier one banks are also the best option over some other random credit card. This is because your approval is almost guaranteed based on the card of best fit for your personal status—as opposed to getting denied, still getting a credit score hit, and not benefiting overall on your credit history. Using a tier one bank is also beneficial since certain cards do more towards upping your score than others. For example, a credit card from Home Depot isn’t nearly going to benefit in boosting your credit score as much as a well-recognized bank.  To boost your credit, make sure you are getting 3-4 lines of credit. This also includes obtaining multiple kinds of credit, which can have a huge positive impact on your credit score. Opt to try to get credit cards, car loans and house loans as options for your variable lines of credit.

For example, if you have a house loan, and are making payments and building history, this will give you a better score when lenders of homes are looking for credit. Having a variety of credit lines ensures a stronger ability to build your credit score, and the more stable it will become.  It’s also very important to get less new credit. This means, in a nutshell, that you need to get credit as soon as you can! Especially if you are young, it’s crucial to obtain credit as soon as possible. You need time to build your credit history—your points will usually jump every 3 months, 6 months, 9 months and a year. Each 3 month period, essentially, is when you will see a boost in your credit score. If you’ve had multiple credit cards for 3-4 years, it’ll be easy to obtain loans and get approval for other cards since you’ve already built a history that will boost your credit score. Note that you should not get new credit unless it’s essential—only get new credit if you’re trying to build your score with credit cards or unless you actually need it, since any new credit lines will immediately reduce your score a small amount.   

  1. Credit Utilization/Maxed Out Credit Amounts

 Look for credit lines, cards or accounts on which you have spent up to the available limit, or are just borrowing as much money as possible without paying down the balance. Note that total credit utilization, or how much credit you are using based on the total amount available to you, comprises of 30% of your credit score. This means maxing out your accounts will lower your credit score dramatically, and paying down these balances can boost your credit score.

The general rule of thumb is to keep your total credit card utilization below 10% of your total limits.  Credit bureaus essentially just want to ensure that you are not recklessly maxing out all of your credit cards, and are only using a small amount of the credit available to you. Ideally, you want to use less than 20-30% of your credit limits, so you are seen as a safe borrower and boost your credit score. The fastest, easiest fix for this issue is to simply pay down your credit cards, so you owe less money. This will almost immediately repair your credit score over the next week or two, without anything else needed.  Another (albeit riskier) solution is—strangely—request for an increase in your credit limit for that account, or open up more credit. Credit bureaus don’t necessarily care about the dollar amount for how much you’re borrowing; they care about how much credit you’re borrowing relative to the total limit you have.

For example: if you have a $1,000 credit line and you’ve spent $1,000 on it, you’ve maxed it out. But, if you have a $10,000 credit line, you’re only using 10% of your overall credit—and that’s good! As such, one technique to boost your credit score is to have several accounts all with plenty of available credit, and high credit limits. This will help lower your credit utilization and increase your score without extra payments needed. This solution is not a good option if you have a spending problem, or are irresponsibly using your credit!   

  1. Obtain Unsecured Lines of Credit

If you have late payments or your accounts are not current, it’s best to wait at least 90 days before implementing this strategy to boost your credit score. This is because after paying off any negative item on your credit history, it updates on your profile as negative mark and remains on there for a minimum of 90 days on your profile—during which time it’s tough to boost your credit score.

 You can actually increase your credit score in 30 days without removing a single negative mark by adding unsecured lines of credit. This includes unsecured credit cards and other non-trade lines of credit. No matter how small or large the credit line, anytime you add a new unsecured credit line, you will see an average increase of almost 30-50 points on your overall score.  It’s best to avoid hard inquiries, since too many hard inquiries can bar you from obtaining any kind of new credit—no matter how good your credit score is! This is an especially dangerous negative mark to have on your credit profile, and can be avoided by opting for unsecured credit cards to boost your credit score.      

     6. Pay Debts Before the Report

 Each of your credit cards or other types of loans have a certain time frame between when they report to the credit bureau. You should call up your credit card companies and other lenders and understand exactly when they report to the credit bureaus. This is crucial because you can then ensure that all of your debts are paid off right before they report to the bureaus. As such, when your credit report is pulled, it will show that all of your cards and debts have been paid down to zero—which will ultimately help you boost your credit score right when you need it bumped the most…and help you to obtain that loan you need to succeed!   

     7. Make Payments On-Time

 The final and most practical solution to boost your credit score is to make on-time payments, each month, and to pay your balance down to zero if possible. If you’re leaving money on your credit card, make sure you at least make the minimum payment on that credit line—but do everything you can do pay it down to zero. 

➤ Need Funding or Building Your Business Credit? Click Here
➤ Need to Boost Your Credit Score? Click Here
➤ Connect with us on Facebook: TyeStyle Credit Solutions LLC
➤ Follow The Credit Lady on Instagram: @TyeStyleCreditLady

*Connect with us on Facebook: TyeStyle Credit Solutions LLC
*Follow The Credit Lady on Instagram: @TyeStyleCreditLady

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