Repairing your credit score takes time. However, you may be able to raise your credit score quicker than you think. There are seven key things that you can do in order to raise your credit score.
1- Check Your Credit Report
Before you can improve your credit score, you will have to take a look at your credit report. Your credit report provides the information that is used to calculate your credit score. It may have inaccurate information, which can lower your credit score. You should make sure that errors are reported and correctly.
2- Lower Your Credit Card Balance
“The amount of revolving credit that you have will affect your credit score,” said CreditSoup.com. The smaller your credit utilization percentage is, the higher your credit score will be. Ideally, your credit utilization percentage should be less than 30 percent. That is why you should try to pay off your credit card balances.
3- Pay off Past-Due Accounts
Even if you only have one past-due account, it can have a negative impact on your credit score. That is why you should try to pay off any past-due accounts that you have on your credit report. You can request that the negative mark be removed once you have paid off your account.
4- Pay Bills on Time
Your payment history is one of the factors that affect your credit score. In fact, 35 percent of your credit score is determined by your payment history. Consistently paying your bills on time is one of the best things that you can do in order to boost your credit score.
If you have trouble making your payments on time, then you should consider asking your bill collectors if you can get the due dates changed. You should also let them know if you are unable to make the payments. In many cases, bill collectors do not report late payments until they are at least 30 days past-due.
5- Reduce Your Debt
Reducing your debt is a lot easier said than done. However, it is one of the best ways to improve your credit score. There are many adjustments that you can make in your budget in order to reduce your debt. For example, you can eliminate monthly memberships that you are not using. You can also cook meals at home and find inexpensive entertainment. You can put the extra money towards paying off your debt.
6- Get a Secured Credit Card
One of the quickest ways to build credit is to get a secured credit card. This is a type of credit card that requires that you put a down payment on it before you use it. Your credit limit is typically equal to the down payment. For example, if you put a $300 payment down, then that will equal your credit limit.
If you make the secured credit card payments on time, then you will be able to improve your credit score within a few months. Using a credit card responsibly will also increase your chances of getting approved for an unsecured credit card.
7- Get Foreclosures, Bankruptcies and Tax Liens Removed
These are the worst things that you can have on your credit. However, the impact of these things will lessen over time. The federal law only allows these things to stay on your credit report for up to 10 years.
If you have a bankruptcy, foreclosure or tax lien on your credit report that has been there for a while, then you can dispute it. Even if it has been on there for less than 10 years, you may still be able to get it removed from your credit report.