ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel
  • »
  • Personal Finance»
  • Managing Credit Cards & Payment Options

Improve Your Credit Score in 30 Days

Updated on May 22, 2012

Tips for increasing your credit score

Maybe you've had bad credit for so long, you think that there really is no legitimate way to change those all important 3 little digits that can determine your future. What can you legally do?

With just 3 simple steps I was able to take my credit rating from 592 (which is really horrible credit) to a credit score of more than 782 (which is a great credit score) virtually overnight. If you or anyone you know is interested in improving or building a credit history, faster than you ever thought possible, then keep reading:

In 2005 I made the decision to follow my girlfriend to a new city. The entirety of my choices would help to ruin my otherwise perfect credit score. The move meant that I would quit my salaried job and become an insurance salesman. The job only paid commission, meaning that I would only get paid when I soild something. Within just a couple of months I lost everything, my girl, the house I was renting, my car, my credit rating dropped like a rock and ultimately, I lost my self respect. By the end of 2006 I was back home living with my mom, all my credit accounts were way past due, and I was paying 22% interest on a piece-of-crap green Geo Storm. To say that I felt like a loser was an understatement.

My breakthrough came in 2007, when I became a licsenced stockbroker. What I didn't understand at the time was this would turn out to be just the breakthrough that I needed to clear up my credit problems. Over the last several years as a broker, I learned of several legal ways to improve my credit rating. As a result, I was not only able to increase my credit scores by an average of 170 points, I was able to maintain it.

Here's what I learned to increase my credit rating:

Item #1:

After ultimately spending what amounted to hundreds of dollars on "so-called" credit repair services that either didn't work or offered only temporary results, I figured out how to get all my negative accounts and collection information removed on my own.

In short, I started by writing letters to each the collection agencies requesting proof that the accounts were mine. More often than not, your collection file has has been sold to another agency. In many states, there is a statue of limitation on the time a debt can be collected. A staggering 89% of the time the current collection agency had no proof that the information on the bad accounts belonged to me. So with this information I was able to get these agencies to deleted the negative information from my credit report.

Number #2:

I opted to opened brand new accounts asking for higher credit limits on each account but, being mindful to keep the balances low.

I learned that if you can keep your available credit limit high while only using 10% to 30% of the credit you have available, your credit rating will improve dramatically.

Number #3:

Ultimately, I ended up adding accounts with several years of perfect payment history to my own credit file. This important step took my credit score from 647 to a whopping 762. While individuals can certainly learn to add seasoned accounts to their credit reports for free, there are several companies that claim they can do it for a nominal fee.

One major hurdle is, they charge between $2,000 and $2,500 per account. If an individual wants a 700+ credit rating you'd need 3 to 4 of these accounts. That will cost you between $6,000 to $10,000.

(Anyone can do a search on Google, Bing or Yahoo for companies that offer this service.)

Moreover, these are just a few step can be completed in less than 30 days.


    0 of 8192 characters used
    Post Comment

    • profile image

      free credit reports from all 3 bureaus 4 years ago

      The written piece is truly fruitful for me personally; continue posting these types of articles.

    • Spitfire07 profile image

      Spitfire07 5 years ago from Calgary

      Some good tips there. Sounds like you can improve your rating over 30 nights, but that is still quicker than the 6 months I have heard to update credit ratings.