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Fast credit repair

terixf | Feb 8, 2010 |

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Raise Credit Score Quickly

To the average American, to raise credit score quickly can become a very important question in need of an answer at various stages in life. When we want to buy a dream house, car, or open a business, to have a great credit score or not can mean the difference in whether you can achieve that dream or not.

Get to know your credit score

Given the importance of the credit score, it is interesting to note that the vast majority of Americans don't know their own credit score. According to one survey, only 2 percent of Americans are aware of their credit score. Getting to know your credit score would be the first step in raising your credit score quickly. There are various ways to obtain your credit report. Once a year in all 50 states the consumer is entitled to a free copy of the credit report but the report does not necessarily include your credit score. Also, given the increase in identity theft in recent years, it is not a bad idea to have a paid company monitor your credit report and they usually supply you with a copy of your credit report as well as your credit score as part of the service and oftentimes more often than just once a year.

Demand accuracy

Once you get your hand on the credit report, ensure all the information that the each credit bureau has compiled on you to come up with your credit score is accurate. After all, this is your financial resume. Your credit score can help lenders predict whether you are likely repay the loan on time based on the agreed terms. You have the right to demand corrections on items that may be interfering with raising your credit score.

Payment history

Your bill-paying habits affect your credit score the most. It is imperative that you make your payments on time. Many lenders will make payment arrangements in case of catastrophes where you are not able to make payments otherwise agreed on. You can also raise your credit score quickly by requesting a late payment be deleted from your credit report once you have established a good payment history with a given lender. The lender is more likely to respond to such request if you have been consistently making your payments on time but you happen to have a one-time late payment. Just the same, to pay your bills on time is the single most important thing you can do to raise your credit score.

Limit the balance on your credit cards

If you max out on several credit cards, this can be an indication that you may be mismanaging your credit. Paying down debts to reflect a favorable ratio of debt to available credit is a great way to quickly raise your credit score. Sometimes, requesting that your credit line be increased can be helpful but you need to strike a balance here. Having too much credit available to you can also count as a strike against you since the more you have available to you the more you are able to spend. Don't blindly keep opening store charge cards and such chasing the lure of percentages off the first purchase or no payments till some date in the future. Not only could this directly impede your efforts in raising your credit score but also if you end up not able to pay for the purchase in full at the end of the promotional period, you pay a hefty interest rate as it often times is the case with store cards.

Show a variety in your credit report

Lenders want to see that you are able to handle different types of credit. Credit card types of accounts are revolving credit and Mortgage type accounts are installment credit. Showing that you can handle different types of credit can be an asset in the quest to raise your credit score quickly.

So while not perfect, the credit score is really a fact of life. Thus, understanding and getting to know it is certainly the first step you need to take to raise your credit score quickly. And just like many other things worth it in life, it may take work to make it work for you but it'll be worth it. Take good care of your credit score and raise it. It may just be the key to your dreams one day.