Top 11 Ways To Boost Your Credit Score Quickly
According to the recent study held by the National Foundation for Credit Counseling, people would rather admit their weight rather than their credit rating.
Ordinary people do not even know that there are more chances to raise their credit scores fairly quickly than getting somewhat positive results from extreme dieting. “Quickly” is probably a little bit too ambitious statement (regarding both weight loss and credit rating). Liz Weston, a financial analyst written the sensational Your Credit Score, Your Money & What’s At Stake, is sure any improvements could be obvious at least in 30 days.
If you lead a couch-potato lifestyle, happily chewing up MacDonald’s hamburgers and ordering tons of clutter from Amazon, you will neither lose weight nor improve your credit score. Stand up and go active!
What to start with?
Don’t you know what to start with? We will guide you through a process. First of all, you need your credit report copy. How can you get it? Just click AnnualCreditReport.com. Any citizen has a right to one free copy of an annual credit report provided by the big three credit reporting bureaus. Evidently, everyone can order such a report every four months from these agencies.
Then take advantage of the following smart tips aimed to help you increase that three-figure number with a mystical power to alter your life for the better.
1. Dispute your credit report
Human factor mistakes happen in all places. You can try to dispute your credit report errors using online services like TransUnion, Experian or Equifax. Fixing the faults is quite a pressing challenge but it is well worth the effort.
There are lots of situations (though they are more accidents), which force you to stop paying off your credit card. Whatever your life circumstances are, you always can ask your credit provider to “write off” your debt or any bill that went to collections. Negotiate with your creditor (written or oral) promising to pay off the remaining balance under the stipulation that the lender agrees to report the credit bill as “paid as agreed” or even cancel it at all. Note: persuade your creditor to yield to your terms in writing before you make the next payment.
Make a point of asking for a “goodwill adjustment”. Sometimes it works. Let’s us consider the next scenario. You are a regular Visa payer until suddenly you are thrown out of work and get unemployed. Evidently, now you can be late with your credit payments, which immediately appear in your credit report. The possible way out of this situation is writing a letter to Visa where you emphasize your past impeccable credit history and ask them to cut off all the breakdowns from your credit report. The lifehack is proven with nearly a 100% result. See it for yourself.
3. Mind your limits
Your actual credit limits must be current or even lower than the reported otherwise unpleasant surprises are guaranteed. If your card issuer is not very prompt to inform you on increasing your credit limits, request them to do that.
4. One more credit card
Having several credit cards (two or three) will be very beneficial for your score provided you don’t overdraw and are never late with payments. Put it simply, be a responsible and regular credit payer.
If you have difficulties with getting a traditional card, try a secured one instead. Make sure, a secured credit card issuer reports to all big three credit agencies. If this advice does not work, you can try…
5. Becoming an authorized user
When you convince someone of your friends or relatives to add you to her/his existing credit card account, you become an authorized user. In a case of a bad financial history you are more likely to be said “NO!” Though, if your credit history is unspotted, you have all chances to hear “OK”.
Propose your relative (friend or whoever agrees) to put a written agreement that will define how much you will be able to spend and how you will share the cardholder’s bill. That is all! Do what you are supposed to do with a credit card but try to be a responsible user: never purchase more than you can afford and do not disappear when it is time to pay your common bill.
6. Underuse your plastic
Though we just advised you on getting a credit, by all means, we did not recommend you to use a card to pay for everything. The so-called “credit use factor” should never exceed 30% (in ideal it must be even less). Leading financial analysts agree that a 10% credit utilization use factor will make good for your FICO rating.
We know you cannot go without examples. Ok. Your Visa plastic has a $1,500 limit and you typically spend a thousand every month. And the credit agencies do not think you are a responsible credit user (even if you manage to pay it off before the due), they think you are a money-waster as you spend two-thirds of your credit! For all these cash-free people we suggest…
7. Raising the limit of credit
What about asking your cardholder to increase the limit of your credit card, for example up to $3,000? Though it must be a deliberate decision because there is always a temptation to increase the spending habits and get immediately back to wasting two-thirds of your credit.
8. Never cancel any cards
Closing a credit card may badly affect your credit scoring and your reputation will definitely drop in a bureau’s opinion. Keep your card active by paying a utility bill, which is a must-have item in a family budget.
9. Blend them all
When you use different credits, you set your credit score for booming. Such as you can take a personal loan from a local credit organization or buy large appliances (but make sure you will be able to meet the repayment plan).
10. Be punctual
Yes, we are serious. Your entire repayment discipline with all the late or skipped payments drives incredible 35 % to your FICO rating. If you’re absent-minded, overloaded or have frequent memory lapses, you should better automate your payments. More than that…
11. Pay your bills oftener
A complete exhaustion of your credit limit is not the brightest decision. Again, imagine you have a $3,000 limit credit card. And your monthly expenditures are $2,900 in total (count there extortionate utility bills, a travel card for your schoolboy, car repair, etc.). Though you try to persuade yourself that you will pay in full by the 20h of the month, it seems more like you are going to max out yet another card.
To avoid whipping out another plastic, try to make your payments twice a month: the first one – prior the statement closing date and next one – just before the due date. These actions will help you reduce the balance (which is continuously monitored by the credit bureaus) and ensure you will avoid any fee or interests associated with a late payment.
In the end
Watch five tips from credit expert about how to improve Credit Score
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