How to Raise Your Credit Score by 30 Points

You can make a big difference in the interest rates you pay on loans by increasing your credit score by 30 points. Credit scores below 620 suggest that the loan is risky because the borrower is not responsible with credit. A score higher than 720 will put you in the "excellent" range, making you eligible for the best rates. Raising your score just 30 points can put you into the next higher tier. Combine methods of raising your credit score and you are more likely to get good loan rates. In fact, you may be able to raise your score more than 30 points in just a short period of time.

Instructions

1

Get a copy of your credit report. You can do this at AnnualCreditReport.com, but this free report does not include your score. Experian, Equifax and TransUnion are the three major bureaus that monitor your credit behavior. Your score may be slightly different among each of the three. Your report should list your open accounts, such as your mortgage, credit cards and student loans. It will also reflect your history for each one, such as whether you've been paying on time.

2

Dispute inaccuracies on your credit report. Scan your credit report to look for mistakes, such as open accounts that you've closed, balances owed that you've paid or incorrect credit limits. If you find these inaccuracies, send a letter to the credit bureaus detailing the mistake, along with documentation that supports your claim, such as a deposited check or a letter stating that your account is closed. The bureau must respond within 30 days.

3

Ask for a credit limit increase while paying down your balance. One factor that counts toward your credit score is the amount of money that you owe as a percentage of the total amount of credit you have available. If you increase the amount of available credit---without using it---you'll improve this percentage. You can ask over the phone. Some credit card providers even allow you to do this online. Increasing the available credit on an older account is better than opening new accounts, because the credit bureaus prefer to see an account with history. If you have a new account, it could temporarily decrease your score.

4

Pay your bills on time. Timely payments play a big factor in determining your credit score. If you have a history of late or delinquent payments, making consistent, timely payments will improve your record and gradually increase your credit score over time.

5

Use credit cards that you have held for a long time. Credit history plays a role in your score, but established accounts carry more weight.