Raise Credit Score Quickly

Raise Credit Score Quickly!

How do you raise your credit score quickly?  It simply pays to have a great credit score because it dictates whether you get credit or not and how high your interest rate will be.  The difference between a good credit score and a great credit score can be a matter thousands if not hundreds of thousands of dollars when in comes to a home mortgage.  This powerful little number is used in many transactions including obtaining car loans, opening utility accounts, applying for a job, or even getting new cell phone account. 

In order to raise your credit score quickly it is imperative to understand how it comes to be.  The FICO score is the most popular scoring method used by the credit bureaus to measure your credit-worthiness.  Everything in your credit report affects your credit score but there are certain key factors and fortunately, some of these factors are easily controlled by implementing behavioral changes.

Quick and Easy Tips to Raise Your Credit Score Quickly

 1) First and foremost, be mindful of your credit score.  Be vigilant of changes in your credit score and what is on your credit report.  This is a surefire way to ensure that there are no inaccuracies in your credit report that are affecting your credit score adversely.  There are ways to obtain free credit reports available such as when a lender has done a credit inquiry.  Utilize the opportunities.

2) Dispute any inaccuracies.  If any types of inaccuracies are detected, dispute, dispute, dispute.  You may have to do this in writing.  You may have to contact the lenders as well as the credit bureaus but this is going to be worth your time.  The few hours you may have to put in can help quickly raise your credit score.

3) Pay your bills on time.  Simple enough, huh?  After all, your credit score tells lenders how much of a risk you are as a borrower.  If you pay your bills on time consistently, it certainly reflects well on you.  Late payments, collection agency involvement, and bankruptcy all tell a negative story. 

4) Try and resolve any negative items possible on your credit report.  If you had that one late payment on an account where you had been a good customer otherwise, appeal to your lender.  They can often times be convinced to perhaps take that one item off your credit report giving your credit score a boost.  Certain types of debts such as medical bills might even be settled for less than you owe at times. Ignoring these items on your credit report will hurt your credit score.  The sooner you deal with them the sooner they will be off your report.  After all, these items will diminish in their ability to affect your credit scores with time and the sooner they are dealt with, the sooner you can raise your credit score significantly.  These items will affect your credit score for 7 years.

5) Keep an eye on your available credit but also limit new credit applications.  Carrying a high balance on your accounts conveys you may be spending more that you can afford.  The percentage of your debt in relation to your credit line should be kept below 20%-50%.  But watch out.  Extending your credit line in order to keep the percentage lower can backfire.  The increased credit availability to you can turn you into a risk in the lenders’ eyes.  After all, the more you have available to you, the more you tend to spend and you can believe they are onto it.  This holds true to extending credit on existing accounts as well as opening new accounts.  However, limiting new credit applications especially helps if you’ve had credit troubles already.  While having credit troubles already, shopping around to open new accounts can be construed as last ditch effort before bankruptcy even. 

6) Keep your oldest account on your credit report open.  The length of your credit history can help show that you are responsible with your credit.  Especially if you have had a long positive history with the same credit issuers, it can help you raise your credit score.  However, it is important that these be active accounts.  Inactive accounts can’t raise your credit scores as much. 

7) Mix it up.  It’s all about perception.  You want to exude that responsibility.  One way to do it is by mixing it up.  You want variety of credit available to you.  You want revolving credit such as a credit card and installment credit such as car loans to be a part of your credit report.  This big picture tells a lender you understand how money works. Don’t feel the need to open every other store card available to you.  You simply need to show variety not the ability to apply for every other card.

Apply The knowledge to Raise Your Credit Score

Credit building is a task that requires a long-term commitment by nature. However, by understanding some of the major factors that affect your credit score, you can help raise your credit score as quickly as possible. Put the facts of your credit score into perspective and tackle each item to optimize your credit score. The investment of your time and care will pay dividends in the future by raising your credit score and bringing into your reach the credit that you need at a better rate and better terms.

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Comments 2 comments

ROYALGATE1 6 years ago

THIS SI THE FOUNDATIO TO BECOMING FINANCIALLY INDEPENDANT


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terixf 6 years ago from USA Author

I'm happy that you found my hub helpful. I really wanted it to be something that can help you raise you credit score quickly.

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