There are many benefits to having a higher credit score: lower interest rates and the likelihood of obtaining better loans are just a couple of them. One of my financial goals aside from paying down my debt is to purchase real estate in the near future. Having a good credit score is incredibly important when trying to secure a home loan. Recently I raised my credit score by twenty points in the span of a month. Here is how I did it.

How I Raised My Credit Score By Twenty Points

There’s a pretty simple trick to raising a credit score in a short span. It’s called increasing a credit utilization ratio.

What Is A Credit Utilization Ratio?

A credit utilization ratio is the amount of debt that you have on your credit cards in relation to the amount of credit that that is available. For example, if you have $100 credit card and you have a balance of $10, your utilization ratio is 10%. Now, let’s say your balance is $65, your ratio would then be 65%. The higher the ratio the more it can impact your credit score in a negative way. Lenders will often assume that a lower ratio means people are better with their credit and have better spending habits.

How To Easily Raise Your Credit Score

If you have had your credit cards for a significant amount of time, there is a simple way of raising your credit score. The simple method to easily raising your credit score is to improve your credit utilization ratio.

How I Did It 

I have three open credit cards. I conta