Ways To Quickly Raise Your Credit Score

The first step to improving your credit score is to know what your score is. The three major credit bureaus are required to provide a free copy of your report every year, so go to www.AnnualCreditReport.com to request a free report every 4 months.

• Correct errors: Go over your report and look for any mistakes that there may be and remedy those online with Equifax, Experian and TransUnion.
• Negotiation: Maybe you missed some payments on your credit card while unemployed-that fact can’t be disputed but you can attempt to negotiate. Try offering to pay the remaining balance on the delinquent account in exchange for the late payments being removed from your report or that account marked as “paid as agreed”. Just be sure to get that agreement in writing before you pay off the balance!
• Know your limits: Ensure that your current credit card limits are reflected accurately on your report. Perhaps the lender forgot to update your newly increased limit; if that’s the case, request that the limit information is updated.
• Don’t max out: Using all of the available credit on your plastic will lower your score; ideally only 30% of available credit should be used.
• Increase your credit limit: Try contacting your credit card lender and asking for your limit to be increased. Be careful not to go on a spending spree after that is done- using 30% or less of your available credit is best.
• Don’t close out accounts: You may be tempted to close out a credit card once the balance is paid, however, that will lower your available credit and can result in your credit score dropping.
• Switch it up: Using different types of credit can increase your score. Try putting a large purchase on an installment or taking out a small loan from your credit union. Only do this though if you are sure you can make the payments on time.
• Pay on time: Paying your bills on time is hugely important and late or missed payments definitely put a ding in your score. Payment history makes up 35% of your FICO score so strive to be on time. If you frequently forget payments, try making them automated so you don’t need to sweat it.