Increasing your credit score fast can seem like a daunting task, but with a few simple steps, you can see a significant increase in just a few months.
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1. Reduce Your Credit Utilization Ratio
Credit scoring agencies look at when determining your credit score is your credit utilization ratio. This is simply the percentage of your total credit limit that you’re currently using. You can improve your score by reducing this ratio, even if you don’t actually increase your credit limit. Keeping your utilization below 30% will help improve your score over time.
2. Request Credit Limit Increases
If you have a good credit history with a particular credit card issuer, you may be able to get a higher credit limit without having to go through a formal credit review process. This will immediately reduce your credit utilization ratio and could lead to an increase in your credit score.
3. Pay Your Bills on Time
Paying your bills on time is one of the most important things you can do to improve your credit score. Late payments can have a significant negative impact on your rating.
4. Set Up Payment Reminders
If you have credit cards, make sure you set up payment reminders to help you stay on top of your payments. Missing a payment can hurt your credit score, so it’s important to be vigilant about making your payments on time.
5. Get a Secured Credit Card
If you’re having trouble getting approved for a traditional unsecured credit card, consider applying for a secured card. A secured card requires you to put down a deposit, which becomes your credit limit. Because you’re not borrowing money, you’re much more likely to be approved for a secured card.
6. Become an Authorized User on Someone else’s Credit Card
If your relatives or friends with good credit are willing to add you as an authorized user on their credit card, take them up on the offer. You’ll get the benefit of their good credit history, which will help improve your score.
7. Don’t Apply for New Accounts too Often
Every time you apply for a new credit card or loan, your credit score takes a small hit. If you’re trying to improve your score quickly, it’s best to limit the number of new applications you make.
8. Check Your Credit Reports for Errors
One of the best things you can do to improve your credit score is to check your credit reports for any errors. These could be anything from an incorrect account balance to a wrong address being listed. If you find any errors, dispute them with the credit reporting agency.
If you spot any errors on your credit report, dispute them with the credit bureau. Having accurate information is crucial to getting a good credit score.