Your credit score is a number that ranges from a low of 300 to a high of 850.
This score consists of a number of factors from your credit history, including but not limited to your credit card, utility bill, phone bill, and car payments.
Lenders often use your credit score to determine your creditworthiness aka your ability to make debt payments on time.
Having a low credit score can result in you paying a high interest rate on your home mortgage, while having a strong credit score can help you obtain a great interest rate.
Below we will discuss different strategies you can use to increase your credit score quickly.
1. Check your Credit Report
First thing you should do is check your credit report.
To do this visit sites such as Experian, Equifax or TransUnion.
US Government law states individuals are entitled to one free credit report from each of the major credit agencies listed above.
Some of these scores may slightly differ, but will give you a good general idea of your credit standing.
Be sure to dispute any discrepancies you find in your report. This is a quick and easy first step in the right direction to improving your credit.
2. Use Automatic Bill Pay
Be sure to set-up automatic bill pay for expenses like your credit card, phone bill, utility bill, and vehicle payments.
Doing this will ensure you do not miss payments and therefore are in good standing with your payment obligations.
Paying your bills on time is a surefire way to increase your credit score quickly.
3. Don't Apply for New Credit Cards
Applying for new credit cards sends the message that you are in need of cash.
This in essence shows you are desperate and not financially stable.
Be sure to keep your old credit cards as they show a longer and clearer picture of your credit history which is great for your credit score.
4. Ask for Credit Limit Increases
If you are in good standing with your credit card company, definitely ask them for an increase to your credit limit.
Your card issuer should grant you a higher limit on your credit card
This is a much better alternative to getting a new credit card.
This strategy will get you one step closer to raising your score.
5. Pay Off your Existing Debt
It's important to pay-off you maxed out credit cards to lower your credit utilization rate.
This is otherwise known as your credit-to-debt ratio and is an important factor in determining your credit score.
These tips and tricks are a fantastic starting point for getting your credit score fixed quickly.
While each individual's circumstances are different, these are great general guidelines to follow.
Beware of people advertising gimmicky methods to improving your credit score. Often times these methods are black hat tricks that will not help your score in the long term.
While obtaining a high credit score takes time and persistence, the reward of being able to buy your own home or car is a well worthwhile all the effort.