There are many reasons why you may want to improve your credit score quickly. Perhaps you’re eyeing up a vehicle for finance, or considering your first mortgage on your dream home. Whatever the reason, a problematic credit score can quickly leave those dreams in the dust if it’s left unresolved.
Whether it’s down to past debts, or simply never having credit before, building up that credit score can be a long and frustrating slog – but there are a few things you can do to boost that number quickly. Here are just a few tips and tricks to get you started:
Check for incorrect information
If you notice your credit rating is particularly weak, and you really can’t figure out why there may be an error with your credit report. While most of the time, mistakes aren’t malicious, identity theft can leave your credit score in tatters – so when you notice an issue, take action as quickly as you can. In 2017, the CFPB received over 85,000 notifications of errors and problems in their credit reports. The best thing to do is to get in touch with the credit score company to dispute any apparent errors or inaccuracies, and your credit score will quickly improve.
Pay down your existing credit and ensure you don’t miss a payment
One missed payment isn’t the end of the world, but even a late payment can have an impact on your credit rating. By contrast, paying down your credit beyond the minimums is a fantastic way to improve your credit score. If you’re using 100% of your credit card availability every month, it doesn’t look good on your credit score. Instead, consciously pay off more – and you’ll find that in a single month, you’ll see a small improvement. Keep on going, and your score will only go up and up over time.
Stop applying for credit
It may seem counterproductive, but applying for credit makes your credit score worse. Especially if you fail to meet the requirements for the loan, card, or store credit you’ve applied for. Abstain from applications, if it’s something you try regularly, and you’ll soon see a significant improvement in your credit score. It may be tempting to apply for things now, but that black mark against your score means you won’t be able to apply a few months from now when your credit rating is far better and more likely to be accepted.
Use credit you have access to
This tip only applies to those that already have credit but are not using it. Typically, a high credit score is indicated by a steady, current, and manageable debt of about 30% of your total credit limit. So if you’re shying away from credit all together, you might be damaging your rating instead of helping it. Buy things like groceries and essentials on your card when you know you already have that money spare, and pay it back when your statement comes through. An instant boost, and an easy one at that.
While your credit rating is vital for many reasons, getting an excellent score isn’t something that can happen overnight. Over 30 days, you can provide that little boost to your numbers; but don’t stop there. Keep on working at it, and your score will be in the green before you know it.