How to Raise Your Credit Score by 20 Points

Although 20 points doesn't seem like much, it can mean a lot when it comes to your credit score. You wouldn't know it from the consumer side, but there is a world of difference between a score of 580 and 600. Your options open up when you increase your score by 20 points, and they close up when your score decreases. Read this article and find out how to increase your score by 20 points. Take your financial future into your hands and watch the doors begin to swing open.

Instructions

1

Review your credit report. There are several websites that offer free credit reports and credit scores (see Resources). Find out your credit score and look for any mistakes that might be in your credit report. Dispute the validity of old debts by writing directly to the agency or selecting "invalid" on the online platforms. It never hurts to try to get them removed, even if you aren't sure whether they're actually valid. If the credit reporting companies cannot validate the debt within 30 days, the items will automatically be removed.

2

Close any open accounts that don't have outstanding balances. Most accountants will tell you you should never have more than four accounts open in your name. Revolving accounts are those that get charged up and then paid down and then charged up again. It's all right to have different types of debt, such as medical bills and student loans, but too many open revolving accounts will pull your score down.

3

Pay more than the minimum payment on your credit cards. If you pay more than the minimum, even if it's just $1 more, you will reap the benefits. The credit card company will report that you are paying more than the minimum and this will raise your score within 30 days from the date your payment posts.

4

Stop applying for credit. Your score will increase dramatically as time goes by and steps 1 to 3 are followed routinely. Two things that can bring your credit down are applying for more lines of credit than you need and too many inquiries into your credit. Make sure you don't let this happen and your good habits will raise your score in no time.