How To Improve Your Credit Score Fast

Do you have a credit score that is not so impressive or a credit history that must improve? If you don’t have a copy yet, you can get your credit report and score for free. Credit scores dictate how our financial lives go. It could even go as far as saving us thousands of dollars. A good credit score can get you the best payment terms and interest rates in loans. In fact a discrepancy of 4% in interest rates is what separates an excellent credit score from a risky one.

So how do you improve your credit score quick? Unfortunately, there is no quick fix here. The fastest that How To Improve Your Credit Score Fastyou’ll see a difference is a month and that won’t even be a dramatic change. You see, credit reports and scores is a compilation of your credit history so no matter how well you do now, a not so ideal past will not be erased unless it occurred seven years ago. Improving your credit score is not an instant fix. It will take practice and habit.

Below is a list on how to improve your credit score fast at least as fast as possible.

  1. Credit balance and credit limit ratio

If your credit card limit is $10,000 and your credit balance is $8,000, this is one of the factors that is bringing your score down. The less of your credit limit that you use up, the better. If you can, bring your balance down to 10% of your limit. If you have gotten a credit increase recently, make sure that your credit report is updated too.

2. Pay it off

Along with your credit card, do you have other existing credit such as loans? Having a big credit is affecting your score so pay it down. If you can, it would even be best to pay it all off.

3. Check for errors

Errors in the credit report are quite common. Make sure that no error is on your report because it just might be dragging your score down. Make sure the credit limits, the payment dates and all other figures are correct. Unfavorable credit activities that you did not make yourself should not be affecting your record so be sure to request a credit report dispute. This is also the time to detect identity fraud and stop it before it escalates.

4. Pay on time

Your efficiency in paying your bills takes up the most percentage in your credit score. It accounts for 35% of the overall score. So if you have missed payments in the past, your credit score will inevitably be affected. Make sure that this does not happen again. If your credit report shows a late payment when you actually paid for it in time, take all necessary actions to fix any inaccuracies.

5. Keep it active

Do you have a credit card that you have had for years that you no longer use? Do not ever think of getting rid of it because keeping a credit card can help improve your credit score. It would do your credit score good if you keep that credit card active. You do not necessarily have to make big purchases to do that, small items that you can pay in full at the end of the month is ideal.

 

 

 

5 Tips On How To Get Credit Score Up

Not all of us have prime credit rating but you want to get your score up for some reason. Maybe you want to get a good rate on your home loan or you’ve been eyeing a job where the employer will take a look at your credit score. Maybe you simply didn’t find a good credit history when you got your free annual credit report.

Whatever it is, below are 5 tips on how to get credit score up.

  1. Low credit balance – If you can, reduce your credit card balance to only 10% of your credit limit. The How To Get Credit Score Upsame goes to all of your other revolving credit. The less balance you have at the end of every month, the better it is for your credit score although sometimes, whether you pay your credit card in full or partial every month does not even matter. What is reported to the three credit reporting bureaus is simply the amount that you have accumulated irregardless of the amount that you paid on your due date.
  2. Pay your bills on time – Not only is a late payment reflected on your credit report but the number of days the late payment incurred will be on your report. If your excuse is that you are always busy and sometimes oversee paying your bills, you can set-up an automatic payment method for that. That way, you are sure to have improved credit history and you don’t have to worry about due dates since your bank account will automatically pay for the bills.
  3. Check for errors – Errors naturally do appear on credit reports so be sure to check yours thoroughly to make sure that an incorrect detail is not affecting your score. Get your free credit report annually to detect discrepancies the soonest. Common errors to watch out for are late payments, unpaid balances and inaccurate credit limit. Even if the error seems to be minor, you should still contact the credit reporting bureau to dispute this.
  4. Keep good credit on your report – A lot of people call the credit reporting bureaus after they have paid off a loan asking to have that loan erased from their report. As long as it was a good credit, it is better to have it remain on your report. It will increase your score and prove that you can pay your monthly dues on time as well.
  5. All existing accounts – is your cellphone subscription history on your credit report? Are your on-time payments reflected on it? Make sure that all the bills that you pay for monthly are reflected on your credit report. Bills including cable provider, internet provider and other utilities. All these monthly payments can increase your credit score.

None of these tips will take overnight. It will take a month at least. That’s the time when all of your information will be updated on the three credit reporting bureaus. And a month of following all of these steps will do you no good either. It will require consistency for you to see results. So more than a quick fix, make these tips a habit.

How To Start Working On Your Credit Report And Score

So you have heard all about credit reports and scores and want to build your own but you don’t know where to start. Start with getting your free annual credit report. You are entitled to a free credit report once a year. Just head on over to the website annualcreditreport.com to get yours online. If you opt to get it online, be sure to save it for future reference. You may also have it sent to you by mail, that way you have a hard copy.

Then study your report. Look closely to ensure that there aren’t any errors. Pay close attention to numbers since this is most susceptible to inaccuracies. Should you find unusual information, take all necessary steps to correct this.

The free annual credit report does not come with a credit score. Scores can be purchased as an added service but it’s not mandatory. Looking at your report alone should give you an idea on whether you have a good or bad credit score. The last step is to do your best to improve your score. There are many ways you can improve it including paying on time, making advance payments and keeping accounts active.