How to Get a Quick Jump in Credit Score

If you want to increase your credit score quickly, you have to know which items affect your score. Lenders use a credit score to assess the risk that you will default on a loan. Credit scores range from 300 to 850. A high score increases your chance of receiving favorable credit terms from a lender. The items with the most impact on your score are the amount of debt you have and how you pay it.

Instructions

1

Review your credit report to check the balances and credit limits. Look at each credit card account.

2

Calculate how much of your available credit you are using for each credit card. Credit reporting agencies consider all your accounts together to calculate an overall percentage of credit usage. For all credit cards, if the total usage is 30 percent or more of available credit, your score will decrease.

3

Pay your credit card balances down or off. Send in enough money for each credit card account to get the percentage of use below 30 percent. You can also choose to pay your accounts off in full. When the credit reporting agencies update your information you will see a jump in your score.

4

Make sure creditors receive your payments before the closing date on the bill. If your closing date is June 22, your balance at that point will be reported to the credit reporting agency. Credit card statements are mailed out on the day after the closing date (in this example statements go out June 23). If you pay down your credit cards on June 23, it will be another full month before the new balance information is reported to the credit reporting agencies.