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If you want to improve your credit score fast, here’s the solution: pay your balances in full, keep your spending under 30% of your total limit, and diversify your types of credit. Sounds simple, right? But it’s not just about paying bills on time. There’s a strategy to it, and I learned this the hard way.
A couple of years ago, my credit score was stuck at 704. I was paying everything on time, didn’t owe much, and thought I was doing everything right. But my score wouldn’t budge. I finally realized that credit scores don’t just reward good behavior they reward specific actions.
First, let’s talk about credit utilization. If you’re using more than 30% of your credit limit, it can hurt your score, even if you pay it off each month. For example, if your limit is $1,000, you should keep spending below $300. And here’s the hack: keeping it under 10% is even better. When I learned this, I adjusted my spending, and my score started climbing.
But here’s where I made a big mistake. I thought not using my credit cards at all would help. Wrong! When you don’t use your cards for a while, banks can lower your limit or even close your account. That happened to me. I didn’t use one of my cards for over six months, and the bank closed it. That hurt my score because I lost…
