7 Ways on how to Fix your Credit Score Fast

Posted: May 16, 2011 in Personal Finance

A credit report tracks a person’s history of paying his or her debt obligations. High credit card balances, inaccurate information and late payments can drag down your credit scores. There are over 30 million people in the United States who are struggling with credit score issues. For you to improve your credit rating, it is vital that you know where you currently stand. Here are easy ways on how you can repair your credit score quickly. Learn more about breaking free from debt secret as you read along.

  1. Pay off credit card balances. Paying your installment loans can help your credit score but it may not be as dramatic as clearing off credit card balances. Lenders want to see a big gap between the credit you are using and your credit limits. Getting your balances up to 30% below can really help you improve your present credit rating.

    Fix your Credit Rating Fast!

  2. Use your credit cards lightly. Racking up huge balances will hurt your credit standing, regardless of whether you pay all your bills each month. You can increase your credit score by limiting charges to around 30% or less than your card’s limit.
  3. Check your limits. Scores can be artificially depressed if the lender is showing a lower limit than what you have. Many credit card issuers will update this information per request. You can go on a wild spending spree to raise your limit, but a more efficient solution would be to pay balances before statement period ends. Check your previous statement and see which day of the month it usually is. And then, go to the issuer’s site about one week in advance to pay off the amount you owe. It will not raise your reported limit but will widen the gap between the limit and closing balance- this could boost your credit rating.
  4. Dust off old cards. The older your credit history gets the better. But if you stop utilizing these cards, the issuer may stop updating these accounts. Experts recommend that you use your old cards once in awhile to keep it updated.
  5. Get some goodwill. If you have been a good customer, the lender might agree to erase a late payment from your history. You may have to send a request in writing to improve your chances of a ‘goodwill adjustment’.
  6. Dispute your old negatives. If you had issues with your telephone company with an unfair bill a few years back, you can protest for unjust charges or disputing the account with the credit bureau.
  7. Blitz significant credit errors. Credit scores are based on the information in your credit reports so make sure you have the right information.
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