How to Instantly Improve Credit Scores

Improving your credit score generally requires consistent and ongoing work over a span of a few months. There is, however, one method that can create an immediate increase in your score. A good credit score is important in many facets of your life. Your credit score can affect your insurance premiums, employment, loan interest rates and even determine whether you qualify for financing. To increase your credit score in a matter of even hours, you have to reduce your credit utilization. This is the ratio of credit limits to credit utilized.

Instructions

1

Allocate funds to pay down your revolving credit accounts. Revolving credit accounts are accounts with a credit limit, but you can continually charge new items as long as you remain under the credit limit. The goal will be to pay down each account to less than 30 percent of the credit limit.

2

Order your credit report with the credit score. Locate all of your revolving credit accounts and circle the date the creditor reports the account to the credit-reporting agency. In the event the date is not listed, call the creditor and ask when accounts are reported to the credit-reporting agency. Circle the credit limit and balance on each of these accounts.

3

Write down the name, reporting date, credit limit and account balance of each revolving credit account you have. Perform a calculation to determine what is 30 percent of the credit limit. If the credit limit is $1,000, you take $1,000 and multiply it by .30. (1000 x .30 = 300) Write your dollar amounts on your paper.

4

Send a payment to each creditor so that it arrives one to four days before the date your creditor reports the account to the credit-reporting agency. If you cannot make a payment large enough to bring the balance to less than 30 percent, pay as much as you can. Your score will show an improvement with any reduction in balance.

5

Wait until the day after the creditor has reported the new balance and pull your credit report with score again. Make note of the credit score increase and repeat the process for each account you reduce the balance on.