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  • 28/06/2025
7 Ways To Increase Your Credit Score Fast (2025) #creditrating #financialfreedom #creditrepair

Are you struggling with your credit score? In this video, I’m going to show you 7 actionable steps that can help you improve your credit score quickly - within 30 days! Whether you're working to recover after late payments or just want to boost your credit rating to qualify for better loan terms, these tips will help you achieve that

I’ll explain the factors that influence your credit score, what makes up a perfect score, and how to work with the major credit agencies like Experian. With a higher credit score, you can save money on mortgages, loans, and credit cards. Let’s get your credit on track for success!
Transcript
00:00If you're wondering how you can improve your credit score then stay tuned. I'm going to talk
00:04about seven ways you can try to improve your score and how this can help you get the best deals for
00:09credit cards, personal loans and mortgages. If you're new to this channel I'm Matt. I've been
00:14a finance consultant for over 10 years working for one of the top consulting companies in London.
00:20I now run my own company and on this channel I talk all things personal finance. So let's start
00:25by explaining what a credit score is. A credit score is a sign of how healthy your credit report
00:30is and lenders will use this to check whether you're a reliable borrower. It can impact whether
00:35you get accepted for loans, credit cards or mortgages. One of the main credit report providers
00:41is Experian and they show credit scores in the following categories ranging from 300 to 850.
00:48A credit score of 670 or above is generally considered good and a score of 800 and above
00:54is considered to be exceptional. Most consumers have a credit score that falls between 600 and 750
01:00and last year the average FICO credit score in the US was 715. Achieving a good credit score can help
01:07you qualify for a credit card or loan with a lower interest rate and better terms. So why is having
01:13a good credit score important? According to Experian most lenders require a minimum credit score of 620
01:19to buy a house with a conventional mortgage. Your credit score plays a role in determining the interest
01:25rate and payment terms on a loan and lenders will base the interest rate they charge on how risky they
01:32view you as a borrower. So while it may be possible to get a mortgage with a bad credit score you're
01:38typically better off improving your score before applying for a mortgage to qualify for good terms.
01:43For example the difference between taking out a 30 year fixed rate $250,000 mortgage with a 620 FICO
01:51score versus a 670 FICO score could be over $160 per month. That's extra money that you could be putting
01:59towards your savings or investments and over the lifetime of the loan having the better score could
02:05save you over $57,000 in interest payments. So what influences your credit score and how can you improve
02:12this? FICO uses percentages to represent generally how important each category is and considers scoring
02:20factors in the following order. Your payment history is 35%, the amount you owe is 30%, the length of your
02:28credit history is 15%, the mix of your credit is 10% and any new credit you have is also 10%. Although the exact
02:38percentage breakdown of your credit score will depend on your unique credit report these percentages can
02:44give helpful guidance and based on this I've got seven ways you can improve your credit score. Firstly
02:51make sure you pay your bills on time. If you have a deadline to make a payment by make sure you hit it
02:57as it shows on your records and demonstrates to lenders that you're able to make a payment when you're
03:02supposed to. Missing payments, having account sent to collections or filing bankruptcy could hurt your
03:08scores and having a late payment history stays on your record for a number of years. So a couple of
03:14tips to help you with this. Set up direct debits for a few days after payday so you have the money in
03:20your bank account ready for any direct debits being taken out for regular monthly bills. And if you do have
03:26any late payments speak to your lender or provider and agree the plan to settle those payments over an
03:32agreed time period so they don't show as late payments going forward. The second way to improve
03:38your credit score is reviewing your credit utilization. This is the percentage of your overall available credit
03:44that you're using. The typical guidance is to keep this at or below 20 to 30%. So if your credit limit
03:52is $2,000 per month that would mean spending no more than $400 to $600 per month on credit. Calculate
03:59this by dividing the amount you spend on credit each month by the total credit available to you.
04:05If you're unable to reduce the amount you spend on credit each month one way to improve your credit
04:11utilization score is to ask for a higher credit limit from your credit provider. Importantly you don't
04:17have to use this additional credit but it can help to reduce your percentage credit utilization. The
04:22third point to improve your credit score is to check your credit report for any inconsistencies. You
04:28can view your credit report on sites like creditkarma.com or annualcreditreport.com. Ensure your history is
04:35accurate and consistent and shows things like the correct property addresses at the correct time
04:40periods of your life and look for any mistakes or errors. This is important because lenders will use this
04:46information to cross check to any applications you make for credit and if there are discrepancies in
04:52the information this can result in your application for a loan being declined. Reviewing your credit
04:57report can also in the worst case scenario identify fraud if someone's taken out credit in your name
05:03without you knowing about it. I had this a few years ago and I worked with the credit report agencies
05:09to correct my information and remove the incorrect credit card from my details. The other thing to watch out
05:15four is linked accounts so if you've ever taken out anything with another person such as a joint
05:20account and you no longer need that account then it's important to correct this information and give
05:25a notice of disassociation as if the person you had a joint account with had a bad credit score this
05:31could also impact your credit score as well. Fourth is the length of credit history you have this
05:36includes the average age of all your credit accounts and also the age of your oldest and newest
05:42accounts showing a good history over a long period of time where the bank shows stability. This doesn't
05:48mean that you can't look for the best bank accounts or credit card providers to move to but think about
05:53having a long-term account and then another account which you use to switch to the best terms every so
05:58often that way you don't lose the record of having an account over the long term. The fifth point is your
06:04credit mix and to use a credit card responsibly. This considers whether you have both installment accounts such as
06:10a car loan a personal loan or a mortgage and also revolving accounts such as credit cards showing that you can
06:17manage both types of accounts responsibly generally helps to improve your credit score. However only do this if you can
06:24spend within your means for example using a credit card on day-to-day expenditure for food shopping or transport. This will
06:32help to build up your credit score. The sixth point is try to avoid too many hard searches and space out any credit
06:39applications where possible. Hard searches are performed when you apply for credit as the company
06:44you've applied to will check your credit report. For example, it could be an application for a mortgage, a credit card,
06:50or even a mobile phone. Too many hard searches can impact your credit score. Experian recommends one hard search
06:58every three months so try to plan out any applications you intend to make so you can spread them over a longer
07:04period and not have them all in one go. And finally, number seven, try Experian Boost to see if it can help
07:11improve your credit score. Experian Boost takes into account regular payments like your monthly utility
07:17bills, your mobile phone contract, or TV subscriptions with Netflix and it helps to show that you're able to
07:24manage your money. Not all lenders will take it into account but it's an extra step which might get you some
07:29additional points that move you into the best credit score band possible. The key is to be aware of your
07:35credit score and the things you can do to improve it, particularly before taking out a loan or line
07:40of credit so you can get the best deal possible. I hope this video has been helpful. Feel free to leave
07:45any questions in the comments and give the video a like and a subscribe and I'll see you on the next video.

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