The above chart demonstrates the power of having a great credit score. I will give three tips in this article that will make your credit score go up almost instantly.

Credit card payments should be automated

Make sure to pay your credit card balance as it is due every month. This is an idyllic situation I guess. So even if you can’t do this try to make at least the minimum payment to boost your credit score. Your payment history is what makes up a large part of your credit score. Missing a payment can have pretty damaging effects like making your credit score fall by 50 points leading to your Annual Percentage Rate (APR) going up 15 percent and increasing your monthly mortgage payment by about a $100 every month.

Debt should be paid off

Get a part time job or get money through other ways like selling your stuff to pay any debt that you have. This is not easy and takes time and patience. Improving your credit score is definitely a big win financially and becoming debt-free will then enable you to increase the credit that is being made available to you.

Length of credit history

It is important to have as long a credit history as you could possibly have. So please hold onto those old credit cards as they maintain that history. It is also crucial for the credit utilization rate which is literally how much you are indebted divided by the total amount of credit accessible.

That’s a pretty nifty chart below that summarizes the relative importance of each segment to your credit score. Make sure to hit the big ones first. 20 percent of your score also depends on new credit and the type of credit used.