Your credit score provides a picture of your financial health so that the lenders can conclude whether to provide you loans or not. The better your scores are, the easier you will get approval for premium credit cards and new loans. If you are able to achieve the highest credit score, then you can avail loans at the lowest interest rates. A good credit score plays an important role in the life of an individual as unlock the door for many benefits. A credit score varies from 300 to 850, and the score greater than 700 is considered a good credit score.
If you want to improve your credit score, there are plenty of things you can do to achieve an ideal score. To repair credit score, you have to invest a lot of time and effort. You can fix credit score fast by following the below-mentioned steps:
- Reviewing credit reports: You can begin your “fix credit fast” process by requesting a copy of your credit report from all the three main national bureaus (Transunion, Equifax, and Experian) and find out the elements that are affecting your credit score like late payments, unsettled dues, high balance in your credit cards, false accounts and other details. Make sure that all the information available in your credit score is accurate to the best of your knowledge.
It is very important that you check all three of your credit reports from all three credit reporting agencies as they all can contain different errors on them. Once you are done with picking errors, file a dispute with all the three credit bureaus, so the same can be removed or rectified.
- Avoid late payment of bills: At the time of reviewing your credit report, lenders are very much interested to know how reliably you pay your bills. Good payment history act as a souvenir to predict your future performance. Paying your bills on time can incredibly boost your credit score. If you are paying late or settling an account for less, then its high time that you should start setting payment reminders or automatic payments to improve your credit score.
Good credit score asks you to avoid activities like default or late payments, foreclosures, repossessions, and third part collections.
- Set your credit utilization rate: Credit utilization is the amount of credit you have used from the total amount provided by a lender to you. Maintaining 30% or less credit utilization rate has a good impact on your credit score. To achieve the ideal credit utilization rate, pay your monthly credit card balances in full. You can also improve your utilization rate by asking for an increase in the credit limit that will assist you to decrease your overall credit utilization.
- Requesting new credit cards: Apply for new credit cards only if required. Yes, we know that new credit cards can increase your credit limit, but it will also have a bad impact on your credit score as it will create too many hard inquiries on your credit report that can be difficult to answer.
- Keep your old accounts open: Keep the records of your timely and complete payment on your credit report as it will fix credit score fast. If you have unused accounts or credit cards with some balance left, then don’t close them as the same can improve your credit utilization rate and improve your credit score by some numbers.
- Avail benefits of credit tracking and boosting services: You can avail the benefit of credit tracking services that will monitor the changes in your credit report over time and will also find the reasons for such changes so that the errors can be rectified within the right frame of time.
- Credit Age: Having a long credit age can help you to fix credit score fast. You can ask your friends or family members with a long history of credit payments, to add you as an authorized user. Five years and more is considered as a good credit history age. The longer the credit history, the better the score.
Now, you have information on how to improve your credit score. Get ready and follow the above-mentioned points to increase your credit standing in the market.