Having a good credit score is crucial for everything. And while it’s easy to ruin a good credit standing, it could take years to rebuild it. Don’t worry because there are some hacks you can try if you want speedy results to boost your credit scores fast. Check these tips below if you want to fix your credit score in no time.
Dispute erroneous information on your credit report
Take time to look at your credit report and scrutinize all details. Make sure that all information is accurate. If you identify negative, outdated and erroneous data, dispute them right away. There are two ways to take off the negative entries on your credit report. You can try the different methods to do it yourself or you can also reach out to a credit card company to do it for you. Doing the latter comes with a fee but this is a faster method of removing the negative data.
Cut credit card debt immediately
To improve your credit score fast, you must cut your credit card debt as soon as you can. A huge chunk of your credit score relies on the credit card debt you carry. If you have many cards, start paying off your past due balances with the card with the smallest balance. As soon as you get those balances cleared, proceed to taking care of your credit cards with bigger bills. Knocking down your credit card balances can help you fix your scores. In fact, you can notice some increase in your score in one month or two.
Get current on your payments
If you have been making late payments for the past couple of months, it’s time to make your payments on time this month. Doing this will help you improve your credit score by 10 to 20 points in a matter of few months. Being late on your payments even for a month or two could result in a steeper drop on your score. Especially when you’re late in paying for your mortgage or auto loans. Make it a point to make on time payments month over month so that you can restore your credit in one year or less.
Reduce your credit use
Credit use refers to how much credit you use versus your credit limit. When you maximize your credit limit, that’s referred to as “high credit utilization”. When this happens, make sure that you pay it all off on the next due date. Otherwise, your credit score will drop. If you’re able to reduce your credit card balance, you can improve your score by up to 50 points. The lower your credit card utilization, the better your credit score. If you must use your card for an important purchase, try to spread it across your other credit cards.
Increase your credit limit
This hack is a good option if you can’t do something about your credit card balances. Requesting an increase in your limit will decrease your utilization. Yet, you need to make sure that you don’t abuse the added limit on your card. Also, be aware that requesting an increased limit may result in a hard inquiry on your credit report. It might cause a small ding but it’s not going to be making a huge impact.
Don’t close your credit card accounts
This is another way to decrease your credit utilization. Especially when you have paid off your balances on some of your cards. Once you have taken care of the card balance, you don’t have to close it. It would help to leave them open so that their credit limit can help boost your credit score.
If you think you can’t get a loan with bad credit? You can! By following these hacks, it’s going to be easier to fix your credit score in no time.
