Blog

How to Raise Your Credit Score in 30 Days – 20 Smart Ideas

May 25, 2019

Have you ever wondered how to raise your credit score in 30 days? Obviously, it’s a worthy goal for real estate investors to raise their scores before seeking a loan. Naturally, by performing credit repair, you stand a better chance of getting the funding you want at a good rate. Read on if you would like to know how to improve your credit score. You might be surprised at how quickly you can boost your score.

Video:  Get an 800 Credit Score in 45 Days for 2019

How to Improve Your Credit Score Instantly

If you want to know how to improve your credit score instantly, you should become familiar with these simple techniques:

1.  Get a Credit Card or a Loan

If you don’t already have one, apply for debt right away. If you receive approval, your credit score should benefit immediately. The reason is that your available credit will rise, and reduce your credit utilization ratio (CUR). CUR equals (credit used / credit available). Importantly, the credit bureaus like to see low CURs, preferably below 30%.

2.  Remove tax liens

Tax liens can really weigh down your credit score. It’s one of several derogatory items that cripple your credit. Naturally, if you pay off your tax debt and lose the lien, your score should immediately benefit.

3.  Join Experian BoostAmerica

This is a program that Experian offers to help consumers boost their scores quickly. Specifically, the program lets you report your bill payments for cable, cell phone usage, utilities and other items. Previously, you couldn’t get credit for paying these bills on time. Now, thanks to Experian, you can. Thankfully, that could have an immediate positive effect on your score.

4.  Join TransUnion CreditCompass

You can sign up for TransUnion CreditCompass, a program that recommends steps to boost your credit score. When you join, you’ll receive credit monitoring and your current score. Then, you set your target score and receive credit repair suggestions from TransUnion to achieve your goal.

How to Raise Your Credit Score in 30 Days

How to raise your credit score in 30 days? There are several things you can do that will improve your score quickly, including:

5.  Fix Your Credit Report

All three nationwide credit bureaus must respond to complaints about mistakes and omissions on your credit report. The bureaus are Equifax, TransUnion and Experian. They understand that errors can depress your credit score needlessly. By correcting the record, you will remove an anchor pulling down your score.

6.  Reduce Your Unpaid Balance

As we mentioned earlier, your credit score benefits when your CUR falls. By paying down your debt, you reduce your utilization of credit, and thereby drive down your CUR. An initial CUR target of 30% is good, but 20% is even better. Clearly, you might have to live lean for a while, but it’s worth it to force down your CUR.

7.  Pay Semi-Monthly

Creditors report your activity to the credit bureaus once a month. Now, imagine you run up a large balance early in the month. Furthermore, suppose creditors report that high balance before you have a chance to pay it off later that month. Inevitably, it will look like you are chronically overusing your credit. If you pay every half-month, your running balance will be lower. Moreover, the bureaus won’t ding you for a phantom high balance.

8.  Request a Higher Credit Limit to Help Raise Your Credit Score

This is yet another tactic to lower your CUR. By increasing your available credit and not spending it all right away, your CUR will go down. Logically, if you increase your credit limit, spending the increase defeats the whole purpose of the exercise. Therefore, leave your increased credit unspent to reap the rewards of a lower CUR.

9.  Open an Additional Account

This too will reduce your CUR as long as you don’t use too much of your additional credit. Beware, opening multiple accounts in a short period can hurt (lower) your credit score. It gives the impression that you are in a financial pickle, and that’s not good for your credit score. Therefore, just add one or two new accounts to help reduce your CUR.

10.  Clean up Past Due Bills

To raise your credit score, cleaning up tax liens isn’t enough.  Truthfully, any bill that is past due can sink your score. Extricate yourself from this losing situation by paying off all past-due bills. One strategy is to get a new credit card that offers an introductory 0% APR on balance transfers for up to 18 months. Next, transfer all your credit card balances to the new card. Now, you’ll only have one credit card bill to pay each month, and you’ll be rid of past-due bills. Alternatively, you can achieve the same effect with a consolidation loan that encompasses all types of debt.

11.  Moderate Your Spending

The credit bureaus will notice when your monthly spending recedes. That will lower your CUR and project an impression that you mastered your finances. Cleverly, try using cash for some of your spending so that your credit balances don’t rise. This will put increasing distance between your balance and your credit limit, a positive factor.

Executing the preceding steps are how to raise your credit score in 30 days, give or take.

How to improve your credit score in 30 days, including what affects your credit score

How to Improve Your Credit Score Long-Term

Now that you’ve addressed how to raise your credit score in 30 days, it’s time to think long-term. Consider the following credit repair steps as examples of how to improve your credit score forever.

12.  Become an Authorized User

You might be just starting out in your use of credit. Or maybe, you’ve hurt your credit so badly that no credit card company will approve you. You can establish or reestablish your credit score by becoming an authorized user of someone else’s credit card. Legally, both you and the card owner will get credit for timely payments. Clearly, that should help both of your credits scores. Even though you aren’t legally liable for the debts on the card, never abuse the owner’s trust in you. That is, act responsibly, earn a better score, and more importantly, keep your trusted friend or loved one!

13.  Obtain a Secured Card

You can qualify for a secured card by depositing money into an account to act as collateral. Your credit line is the amount of the deposit, within the issuer’s limits. Usually, by using the card responsibly for six months or so, you likely will qualify for an unsecured card.

14.  Blend Your Credit

The credit bureaus like to see a mix of different types of debt. For example, your score would benefit by having revolving, personal and installment debt on your credit report.

15.  Get a Cosigned Loan

Apply for a personal loan with the help of a cosigner. This will help you reestablish your financial reputation. Of course, you need to repay this loan on time, or even ahead of time. Afterward, you can take out another personal loan, this time without a cosigner.

16.  Buy real property

Now that you’ve shown your creditworthiness, it’s time to buy real estate. For example, you might consider a fix-and-flip deal. These are easy to finance because the property serves as collateral and the down payment is relatively large. Then, you can graduate to a long-term deal to earn rental income. Use the income to pay down the mortgage, which will be a big boost for your score. Eventually, you’ll be ready for deals of $5 million or more. When that happens, you should contact us at Assets America® as our minimum loans start at $5 million! We can then help you arrange all types of commercial real estate loans, whether construction, rehab, or acquisition. Our brokerage partners will get you the money you need for make sense, real estate deals.

Preventing Future Losses

Here are some steps you should take to prevent a future dip in your credit score:

17.  Pay Your Bills on Time

It’s critical that you pay at least the minimum payments each month on your debts. Naturally, this covers all your bills, as any late payment will be promptly reported on your credit report thus damaging your score.

18.  Don’t Close Old Accounts

Just because you no longer need or use a revolving account, that’s no reason to close it. Rather, by leaving it open, you don’t truncate your credit history and you maintain your CUR. The credit bureaus like the continuity of long-held accounts, so leave them be even if they seem obsolete.

19.  Use Shell Corporations and Nonrecourse Loans

The last thing you want is for bad business decisions to hurt your personal credit score. Therefore, be sure to keep your business debt remote from your personal identity. Use nonrecourse financing and shell corporations to keep your identity obscure. In this way, you can take the risks necessary to win at business without potentially jeopardizing your personal credit.

20.  Consider Relocation

Many successful real estate developers and businesspersons relocate to one of the many wonderful tax havens available. You might choose locations in the Caribbean, Europe or Asia as a place to work and live. Many expatriates give up their American citizenship to become subjects of Lichtenstein, the Cayman Islands or another tax-friendly jurisdiction. If you want to prevent future threats to your credit score, do may wish to consider doing it as a citizen of the world. However, it then makes obtaining U.S. credit much more difficult!

Frequently Asked Questions: Credit Score

Generally, good scores are in the 700 to 799 range on the FICO scale. Better yet, we call scores between 800 and 850 excellent. If you’d like to develop or invest in real estate, your minimum goal is to establish a good credit score.

Even though a score above 720 is preferred for commercial real estate, it’s not mandatory. You can access hard money loans with scores as low as 550, and sometimes even lower. A lot depends on the nature of the deal and the value of the collateral relative to the loan size.

You should probably consider getting secured and cosigned debt. Making your payments on time will help you recover your score over time, though it might take several years. The effects of bankruptcy are immediate but begin to fade after two or three years.

Surprisingly, the answer is no. Collections do grave damage to your credit score, second only to bankruptcy. In fact, it’s so bad, that paying off a collection has little chance of improving your score. Nonetheless, you should pay off the debt and note it on your credit report. Undoubtedly, this will impress future lenders.

Related Articles