Having a good score determines whether you’ll get a loan, rent an apartment, or even get smartphone service. It’s common not to have insight into what exactly determines that score or how to increase it. If this sounds like you, take a moment to read these helpful tips that could raise your credit score by at least 50 points ASAP! The only catch: your score won’t change overnight, but you could start seeing results in 30 to 60 days, depending on your situation. Read on to learn how to increase your score by 50 points or more, the formula used to calculate your credit score, and the actions you can take right now to boost your credit health.
How Is Your Credit Score Calculated?
- Payment history (35%): Creditors want to know that you pay your bills on time. A negative mark remains on your report for 7 years.
- Amounts owed (30%): available credit across all your revolving accounts that you use each month. The lower your credit utilization is, the better! Experts say to keep utilization below 50%, although 10%-30% is ideal.
- Length of credit history (15%) – the older – the better!
- Credit mix (10%): try to have both installment and revolving accounts. Creditors want to know that you can manage both.
- Credit inquiries (10%): Each time you apply for credit, a hard inquiry is generated. Too many inquiries in a short period could indicate financial stress.
Let’s Cut to the Chase: Helpful Tips!
Now that we’ve established the basics, are you ready to increase your credit score by at least 50 points? Here are some helpful tips from our experts:
- Be proactive – pull your credit report. Look out for any inaccuracies that may be hurting your credit score.
- Dispute errors: Getting rid of errors or misleading information on your credit report is one of the best ways to improve credit scores. Dovly’s online credit repair services are simple, transparent, and can make a major impact on your score – 92% of customers experience a 54-point increase in just 6 months. Dovly takes action to ensure your report is accurate and your score is climbing. Enroll now for just $9.99/month.
- Monitor your progress in your Dovly dashboard or sign up for daily alerts about changes to your credit report. We also provide a monthly credit report update at no additional cost.
- Pay your bills on time. Since payment history makes up the most significant percentage of your credit score, it’s pertinent that you make timely payments on debts each month.
- Get Current On Delinquent Accounts. Don’t let past-due accounts drag your score down. Bring all your delinquent accounts current so the lenders and creditors can stop adding negative marks to your credit report. You can also reach out and request a payment arrangement.
- Keep your credit utilization low. The lower it is, the better! Experts say to keep utilization below 50%, although 10%-30% is ideal.
- Don’t close open accounts. Closing an account impacts your credit history and may result in a score decrease. Keep good accounts open and make timely payments to avoid negative marks or a score drop.
- Applying for new lines of credit (credit cards, loans, etc.) may decrease your score – remember that the number of inquiries you submit has an impact.
The ways above can help build your credit in just a couple of months! By learning how your credit score works and following these helpful tips, you’ll be on your way to having a higher credit score. Meaning, you will be more likely to be approved for lending at better rates and achieve financial peace of mind. Want Dovly to do help you? Dovly’s AI credit engine can get you a head-turning credit score with credit (re)building, monitoring, alerts, scores, tips, and tricks – all in one place. Try it risk-free with our free membership tier.