shuttleIf you have one or more maxed out credit cards or you run a high balance on your credit cards, then these simple tactics can boost your credit score fast.

The problem with having high balance is something called the “debt ratio” or the “utilization ratio.”

This debt ratio accounts for 30% of your overall credit score. It is the second most important factor in your credit behind making your payments on time.

The good news is, this is very easy to fix. This is actually the quickest “credit killer” you can fix that will have the most impact on your score.

So what exactly is that the debt ratio? The debt ratio is determined by your available credit limit and how much of that you use.

Let’s say you have a credit card limit of $10,000, if you use $5,000 of that limit you have a 50% utilization ratio.

Now, that’s not too bad, but it’s not great either. Ideally you want your utilization rate to be below 30%. Below 10% is even better.

So how do you accomplish this?

There are a couple of ways. First, you can transfer the balance of one of your credit cards to a new or existing credit card.

Quick side note: if you have any existing debt this can actually help you save on your APR as well.

By moving a high balance credit card to a lower balance credit card, you are lowering your use of available credit.

Another way to do this is to slowly pay down the balance that you run on your credit card. This can take longer and you won’t see your score boost quite as quickly, however it’s an effective long-term strategy. Realistically taking care of your debt ratio is the highest leverage point in your credit.


Because with some parts of your credit it takes a certain period of time to improve them no matter what. That’s just the way it is. However, with your debt ratio you have the power to make a huge change fast. This is how you can see your score go up 30 to 50 points or more within just 30 days.

You see, most people think that late payments are the only thing involved in credit, but you know that’s not the case. It is a more complex issues and that. Thankfully, this credit killer is the easiest one to fix, assuming you use the correct strategies.

By getting a balance transfer or paying down your balance overall you can quickly take care of this problem.

Another problem is that a lot of people think that they should lower their limit so that they can’t spend too much on the card… But this is dead wrong. By lowering your limit your actually damaging your utilization ratio.

Another way you can lower your utilization ratio is to call your bank or credit card issuer and ask for a raise on your credit limit. If you make your payments on time they should have no problem with this. You can also just send an email if you are not a phone person.

These are the three simplest ways to deal with this problem.

To recap:

  1. You can use a balance transfer to lower the amount of credit you’re using on specific card to another card.
  2. Slowly pay down your balance until it’s below 30%, preferably under 10%.
  3. Speak to your credit card issuer and get your limit raised.

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