575 Magazine Articles Fast Way to Boost Your Credit Score

Fast Way to Boost Your Credit Score

A credit score of more than 700 is good and more than 800 is considered excellent. However, anything between 620 to 659 is poor, and under 620 is bad. A good credit score offers lots of freedom but a bad credit score can prove to be prohibitive in many ways, making it difficult to get a loan, and if at all you get one you will not likely enjoy reasonable interest rates. So, it is very important to maintain good credit scores, and if you are wondering how to do so then continue reading and learn the fast way to boost your credit score.

  • Dispute errors and discrepancies
  • Deal with due bills
  • Stay under the credit limits

Dispute Errors and Discrepancies

As per the Federal Trade Commission, nearly 5 % of people have such bad errors on their credit reports that can easily cause a higher price for an insurance or financial product. Almost 1 in every 4 reports has errors that can affect scores negatively at least in a small way.   Once every 12 months, you can attain a free report from the three chief credit bureaus – TransUnion, Experian, and Equifax. Request these reports from AnnualCreditReport.com and go through them carefully to search for any mistakes like negative information that are too old to find a place in the list or late payments mentioned when you have paid on time.

After you find the errors it is time to dispute and get rid of them.   Credit bureaus will respond to your raised disputes within 30 working days. Once the incorrect negative details are removed from your reports your credit score will look better.

Deal with Due Bills

No matter what strategy you follow your credit score will not improve unless you keep paying timely. Remember, your payment history has the biggest impact on your credit scores. If you are lagging behind on accounts, call your creditors, make the payments, and ask if they will withdraw/cancel the mentioned negligence so that it does not show on your reports.

If the creditor agrees, great, if not it still will be a good idea to clear those payments as it is always a nice to stay current on your account. Every month you have an account marked delinquent it hurts your score. Missed payments will remain on your credit report for 7 years but its effects can be counteracted right from now. Right from today make it a habit of paying bills on time so that the recent positives you earn can offset the earlier negative marks.

Stay Under the Credit Limits

Your credit utilization to has an impact on your credit scores. It is ideal to maintain a balance of nearly 30 percent or less of your credit limit. The pre-card and overall utilization both count here, and below are given ways you can manage it.

Make many small payments, also known as micropayments, and you need to make them every month so that you can keep the balances low. It will be a good idea to use your credit card like your debit card and pay online soon after you notice your purchase has been posted.

Handle balances on your cards, starting with the highest utilization. A tax refund or maybe some other windfall can prove to be of help. At times it does not take too much money, particularly on the retailer low-limit cards.

Request for an increase in credit limits. When your balance remains the same but your limit rises higher, you need to lower utilization instantly. Immediately ask your card issuer if without any “hard” credit inquiry you can enjoy a higher limit. Hard inquiries temporarily can drop a few points of your credit score.

Move debt. Debt consolidation loans may help eliminate or reduce card balances, thus lower your utilization. Getting personal loans at rates better than what your credit cards offer may also help save money in interest.   Credit card issuers usually report to the bureaus each month. As soon as a lower balance will be reported by your creditor, your scores will reflect the better utilization.

A bad credit score certainly can make things difficult for you but the good news is it is possible to boost your credit scores by following the simple steps given above. So, waste no time, get started, improve your credit ratings and thereafter always try to maintain a positive score