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Thirty days is all it takes to raise your credit score. You don't have to wait seven years, you just have to know the tricks that calculate your score and how to use those tricks to your advantage. By implementing the following techniques today, you can have a killer score by the end of next month.

STEP 1: CLEAN YOUR CREDIT REPORT

Pull a 3-in-1 Credit Report with FICO scores from one of the three credit agencies' websites (Transunion.com, Equifax.com or Experian.com). Once you have your credit report, look for every negative item and tag the following: Accounts more then 30 days late; collection agencies; and Charged Off Creditors. Dispute these items by saying "This is not my account" or "This account was never late." Within 30 days, these items will be investigated, then either removed, changed, or left the same, thereby increasing your score as much as 200 points instantly.

STEP 2: PAY WITHIN 30 DAYS (Affects 35% of your score)

Even if you can't pay your credit accounts by the due date, as long as you are not more then 30 days past the due date on your bill, you will be reported as "on time." Paying even the minimum increases your score every month.

STEP 3: PAY DOWN YOUR DEBT RATIO (Affects 30% of your score)

Since 30% of your credit score is based on how much money you owe divided by the amount of your available credit (and not income, as most people believe), simply paying down your balances and increase your score. According to Experian and Transunion, the magic Debt Ratio number is to owe less then 35% (or $350 for every $1,000 available) for a monthly score increase.

STEP 4: RAISE YOUR AVAILABLE CREDIT (Affects the same 30% as Step 3)

Again, the magic Debt Ratio number is 35%. By simply asking your current creditors to raise your limits, you will reduce your Debt Ratio without paying a single penny from your own pocket (a very handy trick indeed).

STEP 5: NEVER CLOSE OLD ACCOUNTS (Affects 80% - Payment History/Credit History/Debt Ratio)

Paying off an account and leaving it open makes the credit company report your payments as "on time." So by leaving paid off accounts open, you are improving 15% of your credit history, 35% of your payment history, and 30% of the amount owed (three excellent reasons to leave that card open).

STEP 6: GET DIFFERENT TYPES OF CREDIT (Affects 10% of your score)

Ten percent of your score is based on your variety of credit, so getting a home loan or an auto loan will actually help improve your score every month you have it.

AND STEP 7: LET YOUR CREDIT REPORT STEW FOR A WHILE (Affects 10% of your score)

Once you have put all of the tips above in motion, try not to apply for any additional credit for the next three to six months. Most creditors look at the last year's history when determining your credit worthiness, and they deduce your worthiness based on the number of inquiries. Since inquiries can also reduce your score as much as 5 points per inquiry, every month you go wihthout applying for credit raises your score.

Now that you know, change your life...and change your score TODAY.

Learn more about this author, Erica T. Barton.
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