How Can I Repair My Credit Score Fast?

Having a good credit score is essential if you want lower interest rates on a mortgage or other loans. It also is vital when wanting to get credit card approval. However, establishing a good credit score history takes several years and isn’t something that can happen overnight. If you’re in a financial fix and need cash immediately, this is the last thing you want to hear.

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Fortunately, all hope isn’t lost as experts at Velocifin use to legitimately assist you in improving your credit score fast.

1. Remove Any Falsified Details and Errors On Your Credit Report

The first thing you must do is to quickly raise your credit score by getting your credit report copies from every major bureau. Subsequently, go through your credit report to inspect any fraudulent accounts, or errors. Doing this is vital because the companies with which you do business and the credit reporting bureaus can also make a mistake.

Research carried out by the Federal Trade Commission (FTC) found out that one out of five consumers found errors in their credit reports that were later amended. Therefore, making sure such corrections are done is important. This is because even the smallest issue, such as a fraudulent account, incorrect late payment, a single error, or late payment might affect your overall credit rating.

You should thus never hesitate to contact the company which sent the bureau the details and file a dispute right away with the credit bureau.

After doing this, allow both the furnisher and bureau 30 to 45 days for the issue to be corrected. If you don’t hear back from them within this period, feel free to contact them and follow-up on the matter.

2. Consider Debt Consolidation

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If you want to repair your credit score, consolidating your personal loan to your credit card debt is also an excellent alternative. By doing this, you’ll reduce your credit cards’ credit utilization. This will also convert your circling debt, that is, your credit card debt into installment that’s rated positively by credit bureaus. Furthermore, most personal loans have much lower interest rates than credit cards. This thus allows you to settle your debt quickly over time and with more ease.

3. Make Debt Payments Twice a Month

Another way to quickly repair your credit score is by making your payments after every two weeks rather than one big monthly payment. This is because making debt payments twice a month equates to more payments made throughout the year; saving money that would have been accrued as interest. Making the extra payments also assist you in lowering the principal amount quicker. This helps you reduce your credit utilization ratio and account balances. Consequently, it improves your credit rating.

4. Increase Your Credit Limit

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You may not always have enough money to settle your balances. If this is the case, increasing your credit limit is an excellent alternative. All you need to do is ask your creditor with others more than willing to approve such a request.

For example, if you’ve used the entire $1,000 in your credit card, request your creditor to increase your limit to $2,000. Once this is done, your credit utilization ratio is reduced by half. However, you shouldn’t spend even a penny of the newly allocated credit. This is because this goes against the goal of getting your credit limit increased.

5. Sign Up for Credit Monitoring

It’s also advisable to sign up with a credit monitoring organization to monitor your credit reports. The credit monitoring company will alert you immediately if there are any suspicious changes in your credit. This is vital because any dishonest activities might ruin your good credit score.

As a result, you should always contest any incorrect details.  If a credit bureau sides with your argument, the falsified activity gets removed from the credit report. This assists in increasing your credit score rating quickly.

6. Settle Your Current Credit Card Balances

The card-by-card utilization and total utilization both have an impact on your overall credit score. Ideally, you should aim to maintain your credit card utilization at 30% or less to avoid any adverse effects on your credit score. Therefore, you must never max out your credit card.

If your credit utilization rate is high, it would be best if you put in place a plan to pay a greater portion of the balances. You should also use your additional cash to settle your credit card balances, with this an effective way of improving your rating quickly. This is the case since many credit issuers provide credit bureaus with monthly reports. As a result, you’ll be able to repair your credit score much faster the more you lower your credit utilization.

Intresting related article: “What is creditworthiness?”