How to Raise Your Credit Score FAST

When I was six or seven, my grandmother took my sister and I down to the local credit union to open up our first savings account. It was called a “Kitty Klub” account and the mascot looked like a cross between Tony the Tiger (saving is Grrrrreat!) and Chester the Cheetah (our Cheeto snack loving feline). Along with deposit slips, I received a bank register, a Kitty Klub pencil and a paper pocket to collect quarters for later deposits. If I collected enough quarters and filled up the pocket, I would have $5.00 to deposit into my brand new Kitty Klub account. Unfortunately, this was the extent of my personal financial education I received until I moved out of my parent’s house.

Let’s fast forward to my sophomore year in college. I’m receiving credit card applications in the mail every day (Ooh! Look at the one with the cute puppy picture on the front!), phone calls from telemarketers (Really? A round trip vacation for two to Florida if I just give you my Visa number?), and my futon, kitchen table, bed set and dishes are all on store payment plans (12 months no payment!). The only thing I personally owned was the wilting plant on the coffee table and the Velveeta Shells and Cheese dinner in a box in the cupboard. If I only knew what this six year old is sharing about credit reports! Watch this movie :

1. Get a FREE copy of your credit report and check for errors - Visit www.annualcreditreport.com to get your free report which pulls from all three bureaus, TransUnion, Experian and Equifax. This is important because you’ll need all three FICO scores to get an accurate picture of your current rating. You wouldn’t believe some of the errors that have shown up on my report. Everything from companies claiming that I made a late payment, to showing that I lived in different states (yup, your previous addresses show up on your report) to a completely different person reporting on the print out! Take the time to read it – who knows what’s on there. Check your report at least once a year – it could mean a HUGE difference to your score.

4. Pay down debt – Easier said than done, right? Yeah, I know. But you wouldn’t believe what a little cushion in those credit accounts means to your credit score. Instead of looking at the entire balance, just focus on the making sure that you have at least 20% cushion between your current balance and the maximum available balance that the creditor allows. For example, if you have a credit card that has $1,000 maximum balance, then make sure you don’t have a current balance over $800. Add a little bit extra to your payment, find a quick odd job on Craigslist or sell that ATV you only use once a year for a little extra cash and do what it takes to get that cushion, and maybe a few monetary pillows, in there.

6. Pay off collection, charge off and bad debts after negotiation and ask for total removal or paid in full as agreed – These little hummers can stay on your report for 7 years too and will be dragging your FICO down with them in the meantime. Since you’ve finally paid the creditor in full, the 800 numbers stop calling at 6:02 PM and everyone is happy, work with the agency and creditor to have the collection or charge off removed. This could mean major points for your credit report.

7. Don’t open a bunch of new credit accounts that you don’t need to increase your available credit – Nordstrom, Banana Republic, Old Navy, OH MY! It’s easy to open up a bunch of these store cards for easy access, low balances and hopes for a clean billing cycle. However, all of these new little accounts can hurt your credit rating and open the door for a lot of other problems (need I say shopping spree?).

9. Borrow your buddy - Best friends are good for borrowing a lot of things from, including their credit. Does your fishing or shopping buddy have a 10-year credit card account with a pristine payment history and low balance? Perfect! If your friend or family member is willing, they can call their credit card company and request to add you as a cardholder. Now their entire history shows up on your account and you’ve just earned yourself some easy points.

10. Go back to school – My childhood experience may be similar to yours, perhaps you attended a financial education class in high school for a semester or you’ve ran down to the bookstore and bought a how-to on budgeting that is now collecting dust in the family room. Either way, it’s never too late to brush up on the basics and Wells Fargo has a fun, free on-line educational site for the whole family at home. Easy! There’s a section for your 4th and 5th grader to get your little guy or gal off on the right foot, a 6th and 8th grade Teen version that preps them for high school and their first job, and a young adults section made just for college students and those who moved out of mom and dad’s house. Lastly, there’s the adult site and it covers everything from budgeting to maintaining credit to investing and buying a home. Plus, there’s a Spanish version. Just click on this link : https://www.wellsfargo.com/handsonbanking... SCORE!