7 Facts You Should Know About Student Loan Forgiveness Programs
It may be easier to get rid of your student loans than you ever thought possible!
While improving your credit usually takes time, if you’re taking positive actions you can usually see progress fairly quickly – even in as little as one month. However, there are a few things to know about credit reporting and how it may impact your credit score.
There are a few things that can cause your credit score to rise quickly, including:
Since paying bills on time and maintaining a low credit utilization are both major factors in your credit score, taking actions in those areas is most likely to quickly and impactfully affect your score.
There is no set number your credit score can go up or down in a month. The amount of increase depends on a variety of factors so there’s no set formula. However, as mentioned before, there are actions that are more likely to have a bigger impact.
|Actions that make your score go up the most||Actions that don’t impact your score as much|
|Paying off a large credit card balance||Getting a new credit card|
|Getting current on a past due balance||Applying for a new credit card|
Your credit score may change slightly every month when creditors report updates. It’s rare for one creditor to report more than every 30 days. However, since you likely have multiple creditors and lenders reporting balances, your credit score could change more than once in a month.
Experian notes on their website, “A few lenders report updates to their accounts more often than once a month, but the vast majority do not. So, for most accounts, your credit report shows the balance reported by your lender at the end of the last billing cycle, which was the amount shown on your statement.”
Credit monitoring sites like Credit Karma update every seven days.
It’s not impossible, but it’s unlikely your credit score will go up 100 points in one month. However, if you do the following things, you can increase it (even up 50 or 100 points over a few months):
A bankruptcy can impact your credit score by up to 200 points. If you have one and enough time has passed, you will see a big jump in your credit score as long as you are taking positive actions to pay your bills and keep your credit usage low. If you know you need to make some positive steps to improve your credit score quickly, check out these seven secrets to fixing your credit faster.
In addition to the other healthy credit habits mentioned, there are a few hacks to fix your credit score quickly:
While it may be tempting to try to find a way to hack the system, the best way to maintain an excellent credit score is just to pay your bills on time and not use a lot of your available credit. If you’re looking to build up a credit score with little or no credit history, start by making small steps. Get a secured card or have someone cosign a loan or credit card with you. Read here to learn more about building credit.
Article last modified on February 25, 2019. Published by Debt.com, LLC