As long as you do not have serious black marks on your report as a bankruptcy or foreclosure, you can improve your score in less than a month or two.
So what is the fastest way to improve your credit score? Unfortunately, there is no trick of a magician who can boost your score by some points. The situation of each is different, and there are just too many variables that come into play. But do not worry, increasing your credit does not have to be difficult or take a decade. As long as you do not have serious black marks on your report as a bankruptcy or foreclosure, you can increase your score in less than a month or two by following these tips:
Review your credit report from each of the three major reporting agencies close. Then immediately clarify any errors, such as incorrect credit limits, late payments, or collection items that are not yours. Errors that appear on credit reports. You can get your credit report for free from each of the three credit bureaus once a year at annualcreditreport.com, and you are never penalized for checking your credit report or score.
Always pay your bills on time. The default has the greatest adverse effect on your credit score. If you simply forget to pay your bills on time or are guilty of being chronically disorganized, what are you thinking? I know a better way! Consider setting your bills for automatic withdrawal from your checking account. If you have overdue bills, make plans to get them arrested. Did you know that having an account go to a collection agency is a blemish on your credit report stays there for up to seven years?
Pay your credit card balances. Reduce your overall debt that is in your credit report is a very effective way to raise your credit score. But if you do not have the funds to do so, consider taking a loan from a family member or friend. This does not reduce what you owe, but move debt off your credit report and give your credit score a quick boost.
Do not close credit card accounts unused. Canceling a card can lower your score. For more information about how this happens, read one of my previous posts. A better strategy is to use occasionally your older credit cards to the issuer does not stop sending your information to the credit bureaus. Have a long credit history helps increase your score so remember that hangs over the older cards are a good idea.
Never max out your credit cards. A good rule is to keep your balances below 30% of your credit limit, even if you pay them in full each month. For example, if you have a card with a credit limit of $ 3,000, not accumulate a balance that exceeds $ 900. It is better to have two cards with balances that are each below 30% of your limit, than having a card that you consistently max out.
Make your loan shopping quickly. Since your credit score is pulled when you shop for a loan, submit applications to potential creditors within a period of two weeks. Having lots of credit inquiries can lower your score. But the system will not treat some credit questions (for a car or a home loan, for example) within a short period unfavorably.
Get a credit card. If you have no credit history or a low credit score, a secured card can help you build credit if it reports information to the credit bureaus. You have to allocate an initial security deposit of at least a few hundred dollars, which the card issuer holds as collateral. Some secured cards will extend you credit after showing the responsible use for a minimum of six months. Check the Public Savings Bank Visa, which is a credit card that offers 0% interest on purchases for six months with no annual fees. It tells the story of payment for each of the three credit bureaus.
Get a gas card shop. Even though you may want to buy more than gas, beer and snacks to credit, these types of cards can be easier to get than regular credit cards. And if you're trying to establish a credit history, making small monthly charges you pay in full and on time each month will work wonders to increase your credit score quickly.