Your credit rating can affect your ability to get a job and buy a home, among other things.
Having a low credit score can also impact the interest rate you receive on a loan.
If your credit score is not the best, all may not be lost.
There are a few things you can do that will help you improve your credit score. Here are some tips that can help you boost your credit score fast.
Stay Within Your Credit Limit
The amount of credit you use will affect your credit score.
If you have any credit cards, try to keep the balances within 30% of your credit limit.
Making micro-payments throughout the month can help you keep your balances low.
Check Your Credit Report for Errors
According to CrediReady, a study from the Federal Trade Commission found that roughly 20% of Americans have an error in one of their credit reports.
You should check your report for errors at least once a year. It’s common for credit reports to contain at least one error.
Should you find an error on your report, you should dispute the error with the reporting agency.
Just be sure you have proof of when you submit your dispute.
Credit reporting agencies have to investigate any dispute within 30 days of receiving it if you mail it via USPS, but they are allowed to take up to 45 days if you initiate your dispute online.
So, be smart and only give them 30 days by mailing in your dispute via letter. Send it certified mail so you have proof to use later.
Improve Your Payment History
Making your payments on time will help you improve your credit score.
Your payment history is one of the biggest influences on your credit score.
If you are behind on your payments, contact the creditor to make an arrangement to pay off the balance.
Missed payments can stay on your credit report for up to 7 years, so it’s important to make all of your accounts current.
Even if one payment is just a day or two late, your credit score can drop by as much as 70 points or more. Yep, making on-time payments is critical.
Ask for a Credit Adjustment
Missing a payment due date can drop your credit score, even if you have good credit.
If you don’t have a history of making late payments, though, your creditor may be willing to remove the late payment from your credit report.
You should contact the creditor and explain that you are a loyal customer who previously made on-time payments. If they don’t respond the first time, try again. It’s worth it.
Your credit score is a big factor that requires your time and attention. It impacts your financial future, as well as your current situation. While you can still get some loans with bad credit they usually have some restrictions or requirements that not everyone can qualify for.
These tips can help you improve your credit rating in a very short time. It’s important to note that fixing a credit score will not occur overnight. You will usually see the changes in your credit score in about 30 to 60 days, however.