Improving your credit score in a short time

By Jennifer Bailey | Finance

Nov 23
Improving your credit score
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Your credit score is important because it affects what loans you can qualify for, and what interest rates you will have to pay. Making your score go up, and keeping it that way might seem like a lot of work, so here are the four easiest steps in helping you out. With this, you will know how to improve my credit score fast and make sure it will stay that way.

Maxed out

credit scoreIf you are maxed out on any of your cards, your credit score will go down. To fix this, make a large payment to clear your debt. This will boost your score in a month, and your utilization ratio will go down. It doesn’t matter how much money you have on your card, what is important is having the smallest debt you can manage.

Credit limit

If you can increase your credit limit, but without increasing debt, this can also make your credit score go up. But this works only if you had good credit in the beginning. But if you think there is a risk of spending more money when you get an increased credit limit, maybe this option is not for you.

Mistakes on your reports

In your annual report, there could be some mistakes you will need to correct. This can be an unpaid loan that you did pay; something may be wrong with your credit history; it can show that you are late on your payments when in fact you are not; taxes that you paid for already; a wrong address, name or information of your employment… Maybe it is showing that there is another account under your name, which you did not open? All of those mistakes on the credit report can make your credit score low, so you need to check on that. Reports are in fact there for you to check on them and correct any mistakes. Information that is personal can’t hurt the credit score, but it is a sign for you to check your account more closely because there can be other mistakes or even evidence of a fraud. Any problems you find on your reports must be solved within a thirty day period.

Payment history

This is affecting credit score by thirty-five percent. For your score not to go down, you need to pay everything on time, all the time. Depending on your creditor, you can be late one month with your payment, and it will not show in your history, but if you miss this period, your credit score will go way down. If you weren’t following this rule before, you can now. Paying on time will restore credit score. You can even make a call to creditors and change your dates when you are supposed to make payments, to a more appropriate date for you so that you can make payments on time. It is also important that your basic bills (rent, utility…) are paid on time.

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