How to Increase Your Credit Score on a Monthly Basis

Credit scores serve as a trust meter for lenders. A low credit score tells lenders that you have credit problems or had problems in the past. Low scores lead to high interest rates and can prevent you from qualifying for a loan or credit card altogether. While your score won't jump 100 points in one month, you can take a poor score to an excellent score by paying your bills, using your credit card and making sure your credit report doesn't contain errors.

Instructions

1

Use and pay off your credit card. Using a credit card is one of the most efficient ways to continuously increase your credit score. Stick to charging 30 percent of your card's credit limit or less; otherwise you may negatively impact your score. Pay off the charged amount each month. If you don't have a credit card, apply for one.

2

Make timely payments. Aside from charging and paying off a credit card each month, keeping your loan and credit accounts in good standing is the simplest way to raise your credit score. To lessen the effort on your part, you can typically link your payments to your bank account so the money automatically comes out on the payment due date.

3

Pay off past due loans. Past due loans wreak havoc on your credit score. Creditors typically report nonpayments as 30 days, 60 days and 90 days past due. The longer you go without bringing the loan to good standing, the more your credit score will drop.

4

Fix erroneous reports on your credit report. Errors occasionally appear on credit reports, which can prevent scores from increasing and cause scores to drop. Contact both the credit reporting agency and the creditor. To see your credit report, visit the Annual Credit Report website. Under federal law, you can view your credit report from TransUnion, Experian and Equifax once per year.

5

Ask lenders if they report to all three major credit reporting agencies before applying for a loan. Most lenders do report to all three agencies, but some do not. Don't waste your time with lenders that don't report, because the payments you make on your loan will have no effect on your credit score.