How To Raise Your Credit Score Fast: Tips That Work
A low credit score can mean you pay more for products and services or that you won’t be approved for a loan. An excellent credit score indicates you pose a low risk. From securing a low-interest rate on a car loan to getting approved for your dream apartment, your credit score can open up doors when it comes time to borrow money.
Unfortunately, many people don’t know how their credit score is calculated or what they can do to increase it. Follow these tips, and you could see your score go up in no time:
Ways to Raise Your Credit Score
There are several ways to improve your credit score, including:
- Disputing Credit Report Errors. Your credit report is an overview of your financial health. It lists the outstanding debts you have and how well you have paid them (or didn’t) and identifies whether you’re someone lenders can trust to pay a debt back. If it’s inaccurate, it can spell trouble. If incorrect information hurts your credit score, you have the right to dispute it and get it removed from your report. It is not always easy, but you can see a major improvement in your score in as little as 45 days if done right.
- Pay Off Debt. The simplest way to raise your credit score is to give your score something positive to work with. If you have accrued debt, repaying those balances can improve your score. This is because the amount owed on an account makes up 30% of your FICO score. For example, if you owe $500 on a card with a $1,000 limit, your utilization rate will be 50%—that’s high and will hurt your score. But if you pay that down to $250, your utilization rate drops to 25%.
- Be Upfront with Bills. Being upfront is the biggest component of a good credit score. The best way to do this is to set up automatic payments through your bank or credit card Company’s website. You can also schedule reminders on your phone or computer, so you don’t have any reason to forget.
- Avoid Closing Old Accounts. The length of your credit history matters, and closing an old account is likely to affect you negatively. Even if a card has an annual fee, it may be better to keep it open as long as you can manage the fees.
- Use A Credit Repair Company. If you have bad credit, hire a credit repair company to help you improve your credit score. Many credit repair companies will do the work for you, such as contacting the lenders to negotiate the errors or requesting debt validation and sending those requests on your behalf.
We Can Help
At Lakeshore Law Center, we are committed to helping our clients achieve the credit scores they need. We have over 35 years of experience helping people just like you improve their credit scores. If we don’t achieve the result you are looking for; we will refund your money. If you’re a resident of California in the communities of Yorba Linda, Los Angeles, San Francisco, San Diego, or Santa Ana, call us at (714) 854-7205 today to schedule an appointment and get started improving your credit score!