Increasing your credit score may seem like an impossible task, but it can be done by using some simple tips and techniques suggested by finance experts. Although it will be difficult to raise your score from poor to excellent without letting time erase your bad financial decisions, you can raise your score by enough percentage points to reach the next highest level using these methods. Here are some tips that can give your credit score a quick boost.
Make Sure All Bills Are Paid On Time
When trying to increase your credit score, you must make sure that you are not during anything to hurt your credit score during the process. It is important to make sure that all of your bills are being paid on time and none of your accounts are going to collections because a single instance can wipe out any progress that you have made towards increasing your credit score. Try to pay each of your bills as soon as it arrives at your home to lessen the chances of missing a payment or a payment date.
Pay Down Your Debts
Part of the calculation of your credit score is the amount of credit you have available to you versus the amount of that credit you are using. The higher the percentage of your credit usage, the lower your credit score will be. Before applying for additional credit or a mortgage, pay down your existing debts as much as possible so that you are using less than 30% of your available credit to get your credit score as high as you can before lenders start viewing it. Focusing on paying down the debts with the highest interest rate first will also save you money in the long run.
Correct Your Credit Report
It is estimated that nearly 30% of credit reports contain errors that decrease the creditworthiness of the subject. Correcting these errors can increase your credit score by a significant amount, depending on the type and value of the error. If an error is found, you can either contact the company that reported the error or the credit monitoring company that listed the error in your credit report to have the information corrected. It is easy to open a dispute with the credit monitoring company about an error on your credit report by sending them the complaint in writing and if an investigation shows that the information is incorrect, it will be removed from your credit report.