How can I quickly raise my credit score?
Credit scores can have an impact on many financial decisions, whether it is applying for a new credit card or trying to get a mortgage to buy a new home. In fact, research shows that banks not only lend differently based on credit score but also age. Therefore, maintaining yours is a worthwhile effort. Unfortunately though, life can get in the way and complicate things.
So, in this short guide, we are going to give you more info on how to quickly boost your credit score when time is short.
Tips on How to Improve your Credit Score
Let’s take a look at some of the ways you can raise your credit score, fast.
- Clean up your credit report
If you use different credit reporting agencies, such as Equifax or Experian, or you’ve signed up to one of the many free services to check your credit reports, you can check up on it more often. Instead of viewing your credit file once a year with one agency, you can wait a few months and check with a different agency. So, you can use the time in between reports to look at anything that is causing your score to drop and clean it up. A full list of credit agencies is available here.
- Pay down your balances
Paying off credit card balances is perhaps the single most important thing you can do when it comes to improving your credit scores. Paying your bills on time every month will lower your credit utilization ratio and at the same time increase your credit score. Use this calculator to work out what yours is.
- Pay twice a month
Making more monthly payments on your credit cards can help boost your credit report. The number of payments in itself won’t make a difference, but by paying twice you are much more likely to avoid late payments. You’re also more likely to pay more than the minimum amount and therefore avoid further damage from high interest rates. This will help with a future credit application and you might even benefit from free credit by showing yourself as a responsible borrower.
- Increase your credit limit
It might sound somewhat counter-intuitive, but applying for an increased credit limit from your credit issuer can positively impact your credit history. Raising the limit, but using the same amount each month will reduce your credit utilization rate percentage. For those who are sensible about their credit card use and sticking well within their available credit limits, this is a quick and easy solution that will put you in a great position in the eyes of lenders. More info on this available in this article.
- Open a new account
Initially opening a new account might cause a temporary dip in your score, but making on-time payments and working to keep your credit balance paid off each month will ensure your new account is seen positively in the eyes of the credit reporting bodies.
- Negotiate outstanding balances
Failing to pay off your balances can, of course, negatively impact your FICO score. If you are unable to pay off your balance, make sure to settle the account as, whilst it might give you bad credit, the situation would be much worse should you let the account go to default.
Susan Paige is an account owned by District Media used for placing articles which are not authored by part of our regular writing team. Susan Paige is representative of the virtues of WordPress publishing on the internet: confidence, quality, speed and commerce.