How To Improve Credit Score In 30 Days- Is It Possible?
You might have other concerns, but pay attention to your credit score. Just like in sports or games, a good score brings joy. But in adult life, your credit score matters most. Avoid a negative mark! And keep aside a bad credit history from stopping you when you need to borrow urgently.
5 key factors that determine to build a good credit score:
- Payment history (35%)
- Amounts owed (30%)
- Length of credit history (15%)
- New credit (10%)
- Credit mix (10%)
What is a ‘good’ credit score?
A good credit score plays a crucial role when applying for new credit. Three major credit agencies, Experian, TransUnion, and Equifax, manage credit scores.
The measurement scale used by all credit agencies is different, but the thumb rule is that the higher your credit score, the stronger your chances of being accepted for a new credit.
Experian
| Excellent | Very good | Good | Poor | Very poor |
| 961 – 999 | 881 – 960 | 721 – 880 | 561 – 720 | 0 – 560 |
Equifax
| Excellent | Very good | Good | Poor | Very poor |
| 811 – 1000 | 671 – 810 | 531 – 670 | 439 – 530 | 0 – 438 |
TransUnion
| Excellent | Good | Ok | Needs some work | Needs work |
| 628 – 710 | 604 – 627 | 586 – 603 | 551 – 585 | 0 – 550 |
Did You Know?
“A study found that 31% of Canadians don’t know how to improve their credit rating. Additionally, 20% believe checking their credit score reduces it (which is incorrect).”
Do you have a bad credit score in Canada? Here are 4 reasons why you should improve it.
- If you have a high credit rating, you have a better possibility of getting approved for a loan or accessing other products such as credit cards, rental properties or phone contracts.
- Low-risk applicants with a history of responsible credit management may receive the best interest rates for loans or credit cards.
- A higher credit score may lead to a larger credit limit, helping you reach goals quickly, like buying a car or making home improvements.
- Bad credit may limit job options in law or finance. Higher credit scores aid utility service access like water and internet.
Here are 10 Ways to Boost Your Credit Score in 30 Days:
1. Look for mistakes in your credit reports.
To start, quickly check your credit report for mistakes. Credit bureaus or lenders use your payment and account history. There are chances of errors occurring during data entry. Dispute any wrong marks, like inaccurate late payments, to boost your score.
2. Pay off bills and repayments on time.
Missed payments are recorded on your credit history report if you borrow money or use credit. To improve your credit score, pay your bills and repays your loan on time and in full. Even non-loan bills, like utilities and phone services, can quickly impact your credit score if payments are missed.
3. Pay off your outstanding debts.
Pay off outstanding debts, starting with high-interest rates like credit cards, to improve your credit record sooner. You can consolidate all debts by taking a significant amount of cash loan. If you can’t repay, contact your creditors or lenders promptly.
4. Settle and close accounts you don’t use
Having less credit and closing unused accounts lowers your risk. Creditors consider all your credit agreements, even unused ones. Closing settled accounts reduces the number of accounts linked to your name. Too many open accounts harm your credit score, indicating high borrowing.
5. Make yourself creditworthiness
Lenders can’t evaluate if you’ll repay loans if you’ve never borrowed or loaned. It affects your credit score. To improve it, start with a small amount of credit and manage it responsibly.
6. Ensure you’re registered on the electoral roll.
Being on the electoral roll shows stability and reliability. If you’ve moved recently, you might not be on it. Register with your provincial or territorial ID card and local authority name on the government’s website. It helps confirm your identity and address, improving your credit score.
7. Apply carefully for new credit.
When you apply for new credit, the company or lender usually checks your credit history with a ‘hard credit check’ to see how you handle money. However, too many applications in a short time can down your credit rating. Spacing out applications and using soft checks can protect your credit score.
8. Keep a balanced mix of credit accounts.
Handling different types of credit responsibly, such as credit cards, phone contracts, and mortgages, is essential for a good credit score. If you don’t use credit, your score might suffer, despite a good income. Only apply for a few accounts at a time, as it may drop your score.
9. Generate some bills in your name.
According to Credit Karma, the ‘gender credit score gap’ happens because many women share financial products with their partners, so they miss out on having credit cards or loans in their name. To improve their credit score, women can put bills like mobile phones and utilities under their name even if they don’t have a credit card or loan.
10. Take the same steps as your spouse.
If you want to apply for a home loan together or share your property when married, both your credit records will be considered. If your spouse improves their credit record using the steps mentioned above, it increases your chances of improving your credit rating.
Try PaydayMart to make repayments on time!
It is essential to build good credit, but making repayments on time is an effective way to improve the credit score gradually. However, if you find yourself in a position where you can’t able to repay your bills, then apply for high-acceptance payday loans in Canada from PaydayMart. The application is super-fast and smooth; you can access it anywhere.
