Your credit score is one of the most important assets you have. It plays a role in whether or not you can buy a home or car, what interest rate you’ll receive, and even if you can get car insurance or a job. That’s why if your credit is less than perfect, you want to improve your credit score fast.
How to Improve Credit Score Fast
There are a few ways that you can improve your credit score fast. Some are easier than others, but if you follow these tips, you will see an improvement in your credit score.
1.Check for errors – It is not uncommon that one or even all three major credit reporting agencies have an error on your report. This may not seem like a big deal but it is. In fact, the Federal Trade Commission has reported that 5 percent of all credit reports in the United States have serious errors. That means errors that will keep you from getting an interest rate that you can live with.
So, that means it is worth the hassle to get copies of your credit report and check for errors. You should check the account number and balances. If you do find a serious error, once you have it corrected your credit score will go up very quickly. This is a great way to improve credit score fast.
2.Work with a Credit Repair Company – One of the fastest ways to improve credit score fast is to work with a credit repair company like Creditrepair.com. Some of their clients have seen an increase in their credit score of 40 points in only 4 month’s time.
This is a good option because they do the work for you. They challenge the negative items that bring your credit score down, have any errors corrected, and deal with the credit bureaus so you don’t have to. In addition, they will monitor your credit score and give you alerts if something changes. Also, they help you take steps to keep your score going in the right direction now and in the future. They even have an app you can download to your phone.
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3. Pay off your credit cards – This may sound as if it is easier said than done, but it is really important. One of the major factors that will decide your credit score is your debt to credit ratio.
Simply put, this measures how much of your credit you are using. For example, if you have debt of $5,000 and you have available credit of $10,000, your ratio would be 50 percent. You want this number under 30 percent. So, in this example, you would want your debt to be $3,000 or less with $10,000 of available credit.
One good way to pay off your credit cards is to use a personal loan for debt consolidation. At first, you will simply be transferring your debt from one place, your credit cards, to another, your personal loan, but there are advantages in doing so.
First, you will only have one payment per month, so it is easier to make it on time. Secondly, your interest rate will be lower, so you can pay more of the principal off each month. That means your balance will go down much faster. As your balance goes down, your debt to credit ratio will also go down, and your credit score will increase.
For those with an average credit score you’ll want to check out Guide to Lenders or PersonalLoans.com. Either will connect you with a bunch of lenders that will loan up to $35,000 at interest rates as low as 6.99%. It’s an easy process. Just fill out an online form and you should have an answer the same day.
If your credit is truly poor, then OppLoans is a good option for a personal loan. They will lend those will poor credit up to $10,000.
Getting your credit cards paid off is one of the best ways to improve your credit score fast.
4. Don’t go changing – I’m going to assume here that one of the first things you did was start to pay all your bills on time if you weren’t before. I know it isn’t always easy to do, so, go ahead and give yourself a big pat on the back.
After that, you’ll want to make sure you don’t change any of your habits. Credit reporting agencies and lenders for that matter of fact like to see stability. That means, don’t change jobs, don’t change the amounts you’re paying on the debt, unless that amount is more, and don’t miss a payment or pay one late. And you don’t want to see your credit score slip the wrong way instead you want to improve credit score fast.
Any changes in your financial behavior can send up a red flag that something is happening in your life that will negatively affect your ability to make your payments. While this might not be true, it can hurt your credit score.
So, the bottom line is this. Once you’ve got things going in the right direction, don’t make any changes.
It’s also important to note that it only takes one missed payment to lower your credit score by 100 points if you already have a good credit score. Yikes!
Improve credit score fast doesn’t happen in a minute, but within a few months, you can make a major difference and raise your score by even 100 points if you follow these tips.
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