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A credit score takes into account the behavior of past years. Here's how you can start increasing your credit score today.
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Pay Your Debits on Time This may seem obvious. 35% of your credit score is determined by your ability to pay your bills on time it helps in fast credit repair. Even a payment with a few days late can significantly affect your credit score. If you have lost one or more payments, that's fine. When you constantly pay your bills or payments, your score should start to improve. But it may take a few months to see the results.
Expand Your Credit Limit By raising your credit limit you are decreasing your credit utilization rate. That is, as long as you don’t adjust you’re spending habits accordingly. Then you would just end up at the same credit utilization rate and owing more. To put this into perspective, if you have maxed out a $2,000 credit card, and you call the creditor and get approved for a credit limit increase to $4,000, you instantly cut your credit utilization rate in half. You should see results in an improved FICO score within a month or two with this method. 07/10
Dispute Discrepancies and Errors You should review everything in your credit file, with a particular focus on accounts with late payments or unpaid bills. If you find inaccurate information, you can report inaccuracies online through Experian, TransUnion and Equifax. In addition, you can contact a credit repair company like Lexington Law to help repair your credit. The reporting agency will open an investigation if it finds that your claims are justified and the problem must be resolved within one or two months. Under the law, you are entitled to a free credit report every year. You can request your free annual credit report from the major rating agencies at AnnualCreditReport.com.
Strategically Open Credit Accounts Opening too many accounts in a short time can have a negative impact on your credit score. When you apply for a loan, your credit report is subject to serious investigation that will reduce your credit score by some points. Therefore, the more you apply for credit, the more points you earn in your credit score. If you have one or two accounts with a low credit limit and have not opened any new accounts in the last six months, opening a new credit card account can improve your score. 07/10
Pay Your Bills Twice a Month Most creditors only report their balances to credit bureaus once a month. Even if you pay your card every month, if you use large balances, it may seem like excessive use of your credit. For example, if you use a reward card to pay for everything and maximize it or almost every month. Even if you pay your bill in full, when the credit reporting agency sends your monthly report, it seems that you use most of your credit, which reduces your score.
Become an Authorized User To become an authorized user, you must have a person who manages your money very well and is ready to add it to your account and issue a card in your name. Obviously, this person will have to worry about you and trust you to add it to your credit account. You should not intend to use this credit card and you should ask this favor of someone just to establish or improve your credit score. Once you are an authorized user, the account appears on your credit report, as well as the credit usage rate and all on-time payments associated with the account. As a result, your credit score will increase. 07/10
Conclusion It is important to understand that the faster you will see an increase in your credit score, it may take a few months. You can easily ruin your credit score in less than a year. It will take even longer to repair the damage caused by the irresponsible use of credit. It is much easier and less stressful to maintain a good credit rating than to repair it. The best advice is not to spend more than you can afford and pay all your bills on time. If you lose your job and cannot pay, many creditors will work with you until you find a new job.
