There are many steps you can take to boost your credit score, but not all of them will be as effective as others. Here are Four methods that can help you boost your credit score overnight – and just in time to get the best possible interest rate on a new loan or credit card!
1: Use Your Debit Card Whenever Possible
If you use your debit card for all of your everyday purchases and make sure those purchases are within your allotted budget, you can effectively boost your credit score overnight. Just make sure that you’re monitoring your purchases each month and paying them off in full at the end of each billing cycle so that there’s no interest being charged on them, which will also negatively impact your credit score. If you have a credit card, keep it open and active as well—you don’t want any hard inquiries appearing on your report. It may seem counterintuitive to pay down debt when you want to improve your credit score, but doing so can improve your standing over time if done properly.
2 : Always Pay In Full When You Use A Credit Card
Credit card users don’t need to pay in full every month, but they should pay as much as possible and make a habit of paying in full each time. Doing so will reduce your interest charges and help boost your credit score overnight. Remember that even if you pay off a large balance you still have to be careful about how you use your card on subsequent purchases because missing payments and relying on one lender for a majority of payments can negatively impact your credit score over time. If you want to quickly raise your credit score, try applying for a new credit card with an introductory 0% APR offer. Paying off your balance during these months is a good way to increase your available credit without harming your score.
3 : Keep Up With Your Bills
The easiest way to get a higher credit score is by making sure you never miss a payment. Paying bills on time each month—on everything from your cell phone bill to your gym membership—is an obvious, no-brainer tip for increasing your credit score. But it’s not always as easy as it sounds: Your credit utilization ratio is determined by how much you owe about how much credit you have available. So if you have $10,000 in debt and $100,000 in available credit, your credit utilization ratio is 10 percent. If you can keep that percentage below 30 percent at all times (meaning that at any given moment, you only owe about one-third of what you could potentially borrow), your score will increase significantly over time. To do so, pay off debts or transfer them to accounts with lower interest rates and then make sure those payments are made on time every month. The less money you spend paying interest, the more money you’ll be able to put toward paying down your principal balance.
Remember: You don’t need to pay off your entire balance; lowering your credit utilization ratio will help even if you just focus on paying down part of what you owe.
4 : Try Not To Exceed 30% Of Your Total Available Credit At Any Time.
If you want to keep your credit score as high as possible, don’t max out your credit cards. Only use about 30% of your available credit at any given time—to do so, it may be a good idea to pay off some of your existing debt and then focus on paying off one card in full before moving on to another. Once all of that is accomplished, you can focus on paying off other cards and building up your available credit once again. It’s not uncommon for people with poor credit scores to have more than ten different accounts open; try to avoid doing so if you can. It will make it much easier for you to improve your score if you have fewer accounts competing for your attention.