Here’s The Quickest Way To Raise Your Credit Score

quickest way to raise your credit score

Bad credit sucks.  And although I have experience with dealing with my own finances and my own credit, I am not a certified financial adviser.  If you’re looking for premium advise, check out these guys for Quick Credit Repair Services:

  • www.CreditSesame.com – This is a free montly service.  Credit Sesame helps monitor all of your spending, loans, and even helps protect your identity from fraud.  Credit Sesame has the most hands on tools to offer someone who’s looking to improve their credit.
  • www.CreditRepair.com – This is a paid monthly service.  Sign up for a Credit Repair’s monthly membership so that you can earn 40 points on your credit.

Here’s the Quickest Way To Raise Your Credit Score

Paying close attention to your credit score is a necessary step in maintaining overall financial health. Poor credit has lasting implications on your ability to move forward with financial objectives, well past that one time in college you failed to pay your credit card bill by the due date. If you are one of the millions of consumers who has struggled with keeping a picture perfect credit score, you have likely run into the frustration of being declined for a loan, credit card or mortgage or being otherwise negatively judged based on the perception that you lack financial responsibility.

Although there is no single method to boost your credit score overnight, simple approaches can be used to quickly improve your credit profile.

Although there is no single method to boost your credit score overnight, simple approaches can be used to quickly improve your credit profile.

Correct Erroneous Credit Information

Review your credit report frequently.  Credit Sesame is a great, FREE financial service that allows you to see your credit score at no cost.  And according the FTC, 1 in 5 consumers have an error in their report.  So it’s important to find these errors, but also disputing these credit errors can have lasting, positive effects on your credit.

The information listed in a credit report includes:

  • current and previous address
  • employer information
  • credit card accounts
  • mortgages
  • personal loans
  • student debt
  • and delinquent notations, like bankruptcies, judgments, and liens.

From time to time, the companies reporting data to the credit bureaus make mistakes, leading to erroneous information on your credit report. Incorrect data can lead to a lower credit score, especially when it is related to missed payments, past due amounts or accounts in collections. Correcting this information either through the creditor or through the credit bureaus can substantially improve your overall credit profile in a hurry.

Pay Your Debt On Time

Credit scores are calculated based on a variety of factors, including

  • the length of time accounts are opened
  • the number of different account types
  • payment history

While some factors play a small role in determining your overall creditworthiness, a strong history of paying bills on time lets current and future creditors know that you are financially responsible. If you have struggled with making payments by the due date with previous accounts, creating a habit of on-time payments is a must.

If you have struggled with making payments by the due date with previous accounts, creating a habit of on-time payments is a must.

Establishing a system of reminders works well for some in maintaining a positive credit profile as it relates to on-time payments. Credit Sesame has a great resource of reminders, to help make sure you pay on time.  Some financial institutions also provide bill pay services to ensure you never miss a payment. No matter which course you choose, make sure you make paying on time a priority.

But often, it’s not a lack of discipline, but a lack of money.  So, here’s a list of side hustles to boost your monthly income.

Open A New Credit Card, Responsibly 

This may seem counter-intuitive, but creating a new credit account is one of the best ways to improve your credit score, but only when it is used responsibly. A secured credit card or a secured personal loan is a smart way to tackle this task, as you do not need a high credit score or picture perfect history to be approved. A secured credit card or loan is a credit account with a limit up to a specific amount pledged as collateral at the time of account opening. Issuers of secured accounts hold a relatively small balance in a savings or checking account, say $300 or $500, that can be used to offset any unpaid balance on the card or loan should you not pay back what is owed. Secured accounts are reported to the three major credit bureaus just as traditional credit accounts are, and so they work to re-establish your credit profile quickly.

If you’re hesitant to open a new credit account on your own, you may want to consider becoming an authorized user on a family member or partner’s credit account. Be aware that there are certain risks with this tactic, but it can work to boost your credit score and history when used in a responsible way.

Credit woes are not always easy to get rid of, but following the steps above can lead to a much rosier picture in a few short months. Before all else, start with a review of your current credit report and work toward clearing up any incorrect information. Be committed to paying your bills on time, and open a new account when you feel you are in a position to do so. Over time, your credit score – and future creditor – will thank you.

 

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