How to Improve Credit Score In 30 days -A Complete Guideline

A credit score refers to a numerical expression based on the analysis of a person’s creditworthiness. Banks report to the credit bureaus periodically with detailed reports on individuals with bank accounts and their financial behavior. If you default payment of loans, then you lower your credit score. However, if your credit score worsens, then there are ways on how you can improve credit score in 30 days. You only need to follow the laid down guidelines for loan repayment.

A good credit record is vital when you need to secure loans from financial institutions. Every bank needs to be sure that you will pay back the borrowed amounts within the given time. If you want a good credit record, you should always ensure that you keep your records straight. People who bring down their credit score reduces the chances of getting a loan from financial institutions. Most importantly, you should always repay debts on time to maintain a good credit.

Bank accounts are not only crucial for helping you to save money and secure loans but can help you make Important online transactions. For instance, you can transfer money using the routing number and account number to someone else’s bank account no matter where they are. It is faster to transfer funds from one account to the other within the same bank as opposed to a bank to bank transfer that delays a bit as banks need to create linkage.

Who Is Responsible For Determining Credit Scores for Bank Account Holders?

how to improve credit score in 30 days

As I mentioned before, banks and other financial institutions give reports to credit bureaus that do a detailed analysis about every account holder and give out a score based on one’s economic behavior such as loan repayment patterns, defaulting or even paying past time.

 Other factors the credit bureaus study is how you have been using your account. Do you withdraw more than what you save? For instance, having a bank account and concentrating on it for all financial activities can help increase your credit score. If I want to consolidate bank accounts, I can transfer money from another account to my account within the bank I intend to concentrate on.

The three main credit bureaus who give your credit reports are Equifax, Experian, and TransUnion. The agencies usually use the same criteria. Each does it’s operations independently to ensure fairness. When looking for a credit report, you should get it from all the three companies and compare them. There should be a small difference in the scores.

Which Details Does A Credit Report Contain?

A Credit report indicates your bill settlement history, your loans, current debts, as well as other crucial financial information. Moreover, the report shows where you live as well as where you work. Again, the credit report shows whether you have a criminal record, have faced arrest, or have run bankrupt.

Credit reports are essential tools that help lenders to decide whether to give you credit as well as whether to approve a loan. Your statement also helps to determine the amount of interest they will charge you on credit or borrowed money.

Other parties, such as employers, insurance companies, and rental house owners, can also look at your credit report to make informed decisions. They may decide to use any credit agency, and thus you cannot know which credit report any of the parties will apply.

Keeping your transactions clear can help a lot in ensuring that you get a good credit report. Simple account operations such as money transfer, bill payments, and regular deposits determine a lot on how your credit score will be. Saving a lot gives banks and other financial institutions the confidence to deal with you.

You do not need to visit banks to save money as you can do it online. You can transfer money from one debit card to another, and the balance reflects directly into your account.

How Do I Get A Credit Report?

You are entitled to get a free credit report each year. Each of the three credit agencies, i.e., Equifax, Experian, and TransUnion, should give you a free yearly credit report. You can pick them at once or distribute them throughout the year whereby you select a report from one company in April, another report from another company in August and another one in December. You are the one to know how to distribute your report collection.

If you need the reports, you can order them by visiting annualcreditreport.com, or just call 1-877-322-8228. You can as well complete the Annual Credit Report Request Form and send it by mail to:

  • Annual Credit Report Request Service
    P.O. Box 105281
    Atlanta, GA 30348-5281

Moreover, you can contact any of the three companies to buy your credit report if at all you need it urgently as follows.

Credit reports are beneficial for your financial activities because some banks can even allow you to open a bank account with no deposit required since they believe that you will do it later since your report shows it.

Once you get the reports, you should compare them and see if there are errors. If you come across errors in your reports, you should have them corrected. Moreover, the Federal Fair Credit Reporting Act (FCRA) ensures that there is accuracy and privacy of data in the files of the credit reporting agencies.

Why Should You Check Your Credit Report Periodically?

It is essential to always have up to date details about your financial reports. The reason as to why it is an essential practice to always to check your credit reports is;

  • To know whether you are eligible for a loan and how much to pay to get a loan.
  • To make sure that information about your financial records is up to date before you apply for a loan.
  • To check identity theft where fraudsters open an account using your name and default borrowed loans, thus leading to your details moving to credit bureaus as a defaulter. That can make you miss a loan. However, if you find out early, then you can request the closure of the fake account.

It does not make sense to steal someone’s identity and open accounts. You can still send money to someone without a bank account using a prepaid card account. You can as well receive money using the prepaid card account.

One thing you need to know is that your credit report does not have a credit score. However, your credit company can give you a credit score for free.

How Can You Improve Your Credit Score In 30 days?

It is feasible to improve your credit score in 30 days by putting into consideration various issues which include the following.

1. Paying down the revolving balances to less than 30%

Debts on credit cards and installments occupy 30% of your credit score. Ensuring that you pay all credit card debts as well as installments to below 30% on-time improves your credit score significantly. You do not need to pay for everything. Maintaining the debts below 30% works too.

2. Removing late payments

Late Payments can drop your credit score to a large extent. Having just a single late payment can drop your score by 60 to 110 points. You can talk with your creditor to have mercy on you and remove late payments.

3. Removing any collection account

A collection account comes about by you failing to repay your debt on time and the lender transferring your details to a debt collection company or selling it to a debt buyer who in turn follows you. You should pay for the delete of the collection account after settling the debt.

4. Raising your credit limits

You can build your credit limit to improve your credit score. If you pay on time all debts owed, then you can increase your credit score. You can talk to your bank to raise the limits a bit higher for a better score.

5. Charging small amounts to inactive credit card

If you have several credit cards apart from the primary card, ensure that you use them. You can charge minimal costs on the cards to keep them active. Use your cards even to buy items just as you can buy gift cards online with a checking account. Inactive credit cards lower your score.

6. Getting a secured credit card

A secured credit card needs you to deposit a certain amount of money as security before getting any credit. Secured credit cards help to improve your scores. Moreover, any credit card contributes to the improvement of credit scores.

What Do I Do To Prevent Identity Theft?

If you discover that someone else is using your details to open accounts, you can apply for a credit freeze. A credit freeze ensures that no one can access your credit reports.

Any bank requires credit reports to open an account for you. Therefore, if someone tries to use your details to open an account, the credit report is inaccessible. The bank cannot, therefore, open the account for the fraudster.

Note that, if you freeze your credit, you continue with your normal transaction activities in your accounts. You will still be able to do various transactions such as to send money online using a bank account to someone else. To freeze your credit, you can contact those responsible for using the following information.

  • Equifax
    Online: Equifax Credit Report Services
    Phone: 1-800-685-1111
    By mail, write to:
    Equifax Information Services LLC
    PO Box 105788
    Atlanta, GA 30348-5788
  • Experian
    Online: Experian Freeze Center
    Phone: 1-888-397-3742
    By mail, write to:
    Experian Security Freeze
    PO Box 9554
    Allen, TX 75013
  • Innovis
    Online: Innovis Freeze Options
    Phone: 1-800-540-2505
    By mail, write to:
    Innovis Consumer Assistance
    P.O. Box 26
    Pittsburgh, PA 15230-0026
  • TransUnion
    Online: TransUnion Credit Freezes
    Phone: 1-888-909-8872
    By mail, write to:
    TransUnion LLC
    PO Box 2000
    Chester, PA 19016

Once you initiate a credit freeze, the concerned institution will take effect on the process the next business day. That applies to a request you place online or by phone call. Credit freeze requests by postal mail take approximately three business days after a credit company receives your request.

Bottom Line

Having a bad credit score makes every institution to be reluctant when it comes to giving you a loan. Late debt payments, collection accounts, and dormant credit cards, among other factors, can lower your credit score. For faster credit score improvement, ensure that you adhere to terms and conditions of various products by financial institutions. After all, it is possible to improve your credit score within a short period.