How to Quickly Turn Your Credit Score Around
If you’re looking to improve your credit score quickly, there are a few key things you can do. Credit scores should not fluctuate like the stock market.
However, some may experience a significant decrease in credit scores. Naturally, we’d prefer to have a significant credit score increase.
If your credit score is lower than you’d like, there are some fast and easy ways to improve it. Depending on what’s lowering your score, you could see an increase of 100 points or more.
By following these simple 8 steps, you could quickly improve your credit score and get back on track.
Paying Debts to Lower Balances
Credit utilization is a measure of how much you’re using versus the amount available on your account. The higher this usage number, the less ideal for improving scores.
This means that there are more inquiries going back to credit bureaus increasing risk factors like age and debt levels. Making sure creditors report low balances whenever possible will help.
Paying credit cards timely can also be good practice for when accounts get reported for the due date.
Lower balances are better for scoring purposes because they show that you pay attention to detail when managing your money.
Make sure everything stays under control by paying downs before each billing cycle ends.
Pay Bills on Time
This is one of the most significant factors with credit scores. Pay bills as soon as possible of the due date.
Ask credit card issuers if they will consider no longer reporting that missed debt to the credit bureaus. This is so it doesn’t hurt future chances of getting loans approved or increases in the future.
Paying late can have a devastating effect on your credit score. Missing payments by 30 days or more will stay recorded for 66 months in most cases.
If you need help getting current with an account, don’t hesitate to call the creditor immediately.
Ask if they are willing to take care of this matter promptly so it doesn’t affect future reports from being sent off after just one missed payment.
Review Your Credit Report
It’s important to review your credit often. You can protect your credit by getting your credit reports.
You’re entitled to free annual copies of all three major bureaus’ reports from AnnualCreditReport.com.
You can obtain your free annual credit reports by contacting each of the three main credit bureaus individually.
Equifax: Call 800-349-9960 or Equifax.com.
Experian: Call 888-397-3742 or Experian.com.
TransUnion: Call 888-909-8872 or TransUnion.com
Check for any outdated information that might be negatively affecting how lenders view this score.
This includes too many old loans showing partial payments which haven’t been updated.
Review your reports for accuracy to ensure the information regarding your personal, financial, and private information has not been altered negatively.
Dispute Credit Report Errors
At any time, you can dispute mistakes on your credit report. This will help to quickly improve it and may avoid a decline in the score due to an error that has been incorrectly marked as resolved or deleted.
If you find mistakes on your credit reports, such as payments marked late when they were actually paid partially or entirely or someone else’s activity mixed with yours, then definitely dispute those errors.
It’s important not only for maintaining good standing with banks but also when applying for jobs where having high scores is essential.
Ask For Credit Card Increases
When your credit limit goes up, it lowers the overall amount of debt you owe and this can help improve a high utilization rate.
If income has increased or there are more years since last having any negative activity reported on file – like an account bill payment that’s been late—you may be able to get a credit card limit increased.
This will help improve the overall health of that account and reduce any potential risks associated with having too much debt on one loan regardless if income goes up or not!
It also has an impact on what type of accountancy grades or loans are available to help with those needs – like student debt obligations!
But whatever you do once you get the increase, keep that card usage below 7%!
Become an Authorized User
If you’re looking to build your own credit score, don’t be afraid of becoming an authorized user on someone else’s account such as a spouse or family member.
Authorized users can use the primary card holder’s good history and high limit as long they are added to all three major bureaus (Equifax., Experian &TransUnion).
With an Authorized user, usually, you get your own credit card with your name on their same account. This action takes a LOT of trust between those involved.
Do not be offended nor push if they choose not to help. Their score in turn could go down as a result of letting you piggyback using their credit.
You would still be obligated to pay any debt from purchases accrued from your card.
Read the fine print of the credit card agreement BEFORE accepting. You may be obligated for their debt as well. Even if they pass away. Terms do vary by state and country. So do your own due diligence.
It’s always better to be safe than sorry when it comes to adding new accounts.
Contact Collections
If you’re having trouble getting rid of a collections account, paying it off can help significantly.
The agency may stop reporting the debt once they are paid in full. Your credit reports will also remove them if their accuracy isn’t correct or too old.
Usually accounts pasts 7 and a half years should be removed from credit reports.
It’s important to pay off collections accounts because you can be sued over debts. If the debts are accurate, credit agencies can report your findings which may be seen by employers and loan issuers.
Get a Secured Credit Card
If you’re looking for an easy way to build or rebuild your credit, consider getting a secured card.
This type of deposit-backed loan is perfect because it can help get your finances back on track while still providing some peace in knowing that the funds will be available when needed most.
The best part about this option? You use secured credit cards just like any other purchase with no additional fees. You won’t have to worry about how much debt collectors might accrue from excessive interest rates (and late payments).
They work just like a debit card. Each secured card varies with their reporting to credit agencies so be sure to read the fine print.
Further, many convert into an actual credit card within the first year. Some will within the first 6 months.
Conclusion
If you’re looking to quickly improve your credit score, there are a few key things you can do.
Make sure you’re maintaining a good credit history by paying your bills on time and keeping your balances low.
Reviewing your credit reports regularly can also help you catch any errors or mistakes that could be dragging down your score.
By monitoring your credit, communicating with creditors, and reviewing your credit report, you can make a big impact on your credit score.
Taking these steps can help you turn your credit score around quickly and help you boost your credit score.