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Here are some ideas for how to improve your credit score fast.
When you have a poor credit score, there can be a sense of urgency about repairing your credit score.
It might be that you have a big purchase you want to make in the near future like buying a house or a vehicle, and you want to qualify for better terms to get a loan. It could just be that you want to have a better credit score so that you can have credit cards in the event of an emergency.
Whatever the case is, it’s definitely possible to improve your credit score in a short amount of time. You just have to be disciplined. Here are a few other tips for how to improve your credit score fast.
Understand Where You’re Starting From
You can’t work on improving your credit if you don’t know where you are starting from so the first thing you need to do is request a free credit report from a website like creditsesame.com. This way, you’ll be able to see everything that is on your credit report. There may actually be inaccurate information or older accounts that should have fallen off but haven’t. These things may be affecting your score so you’ll want to be aware of them.
Pay Your Bills on Time
One of the biggest aspects of a good credit score is payment history. This means that you can’t have late payments. Always make on-time payments and pay at least the minimum amount that’s due.
Negotiate with Collection Agencies
If you have accounts that have gone to collection agencies, you may want to just talk to them and try to negotiate with them. In many cases, they will help you. They may actually accept a lower payment or they may stretch the payments out over time. If you explain what you can afford, you’d be surprised at how many of them will be willing to work with you.
If You Can’t Open a New Unsecured Credit Card, Get a Secured Card
You may not qualify for an unsecured card, but you will be able to get a secured card that requires a deposit. These can be the best way to demonstrate that you can use a credit card responsibly. Once you improve your credit score, you’ll be able to apply for unsecured credit cards with better terms and conditions.
Don’t Use More than 30% of Your Credit Limit
Credit utilization is another big aspect of having a good credit score. Make sure you keep your credit usage at or under 30%. Many people achieve this by making two or three payments in a month. If you have balance alerts, you can be notified every time your credit card is about to reach 30% utilization so you’ll know to make a payment.
Repairing your credit in a short amount of time can definitely be done. You just have to be disciplined and use credit more responsibly than you may have in the past. If you take these steps, there’s no reason your credit score shouldn’t improve.