Hello! My credit score is currently 613. I am trying to raise it. I have $45,000 in student loan debt & $1100 in credit card debt that will be paid off by August. These are my only open accounts. Besides paying my card balance fully every month, how else can I dramatically increase my score?

Hi "613"!
There are a few things you can do to raise your score:
1) Pay down debt (30% of your score). So once you pay off your credit card debt, your score will jump.
2) Pay your bills on time (35% of your score). Continue to make your monthly payments on time
I know you think you can't do this one, but it's the FASTEST way to dramatically raise your credit score...
3) Auto-pay off a small debt aka bring it’s balance to $0 EVERY month. FYI: This is where the magic happens. Doing this will make your credit score jump like Jordan.
I would consider going to your bank as requesting a secured credit card. Go to your bank and apply for a secured credit card. A secured credit card is "secured" by your own money. You deposit money in an account and that money becomes your line of credit. It's much easier to get a secured card because it's no risk to the bank.
Make sure that:
- You’re cautious of anyone that asks you for outrageous start-up fees (some places try to charge up to $200) or for you to call a 1-900 number that will charge you money.
-You're sure to ask if your transactions will be reported to all three major credit bureaus. You want them to see that you're paying off your debts so your score can begin to improve.
- You get a secured card at a bank you want to continue to use for a while. You'll eventually want to ask if you can switch to an unsecured card with the same bank, so choose wisely.
- You automate the use of the card. Do this by placing a small automatic payment on the card each month (ie: magazine subscription, gym membership, phone bill). That bill should be the ONLY thing your secured card is used for. Then, sign-up for automatic, bill-pay at your bank (this is a free service), and instruct the bank to send the full payment of your bill, from your checking account to your secured card every month. This will create a payment loop effect that eliminates the flawed human element….you. I suggest you
leave your secured card at home and allow the loop to work for you without interference.
- Pay off your balance every month: Something magically happens when you pay a debt off in full each month. Your credit score does a happy-dance and jumps up. It doesn’t matter if the debt you paid off was $5000 or $5, same happy dance occurs. You can encourage your credit score to do a happy dance 12 times a year, by paying off your secured credit card in full every month.
4) Once you pay off your card, consistently keep your credit card balances below 30% of your credit limits, this will help to tremendously raise your score too. This means if your limit is $1000, keep your balance below $300.
5) Clean-up your credit report by asking that old negative items be removed.
Hope this helps!
The Budgetnista

View more