Article originally published September 1st, 2016. Updated October 29th, 2018.Â
Itâs a common question around these parts:Â how do I fix my credit?Â And, while credit scores do have a lot of nuances, the answer is actually pretty straightforward: pay all your bills by their due dates, keep your debt levels low, add a mix of accounts as you can afford it and voila! â your credit score should rise steadily over time.
Still, for people plagued with bad credit or someone looking to get the absolute best rates on a new loan, waiting it out can seem like an unattractive option â and so the question gets a little more pointed: how do I fix my credit fast?
Truth be told, there are no guarantees when it comes to getting a quick credit boost. Exact point increases will vary depending on your full credit profile and, even if youâre teetering toward top-tier credit,Â your scoreâs beholden to a lenderâs schedule when it comes to reporting new information to the major credit bureaus.
Most creditors provide updates to the big three bureaus every month â meaning, yes, you can boost your credit in 30 days, but any shorter timeframe is admittedly a long shot.
Still, there are few steps you can take to try toÂ raiseÂ your credit scoreÂ in the short-term. Hereâs a breakdown of ten of your best options.
1. Pay Down Your Credit Card Balances
Credit utilization ratioâ how much debt youâre carrying vs. your total available credit â is a huge part of credit scores, second only to payment history. But while you canât just erase a missed payment from your credit file (most negative information takes seven years to age off of your credit reports), you can pretty readily boost your utilization rate by wiping out big credit card debts.
Experts generally recommend keeping the amount of debt you owe collectively and on individual cards below at least 30% and ideally 10% of your credit limit(s).
So, if youâre close to maxing out one card and/or youâre carrying big balancesÂ on all of them, paying those debts down can result in a fast boost. Just be sure to pay charges off by your statementâs billing date as opposed to their actual due date becauseÂ thatâs when most creditors will update account information with the credit bureaus.
And, of course, refrain from making any new purchasesÂ once the debtâs been eradicated.
2. Ask for a Credit Limit Increase
Essentially, a different solution to the same problem â you may be able to improve your utilization rate by getting an issuer to give you a higher limit on one of your existing cards. Just be sure not to use up that extra credit. Otherwise, this move can have the opposite effect.
And be prepared to see an initial ding to your score â creditors sometimes pull your credit when you ask for a limit increase, and that could generate a hard inquiry on your credit reports and cost you a few points.
You might easily make up those points and then some, however, if the credit limit increase is large enough.
3. Get an Error Removed
Errors on credit reports are more common than you may think, so itâs important not to simply take a bad score at face value â particularly becauseÂ getting an error removed can be one of the faster ways to fix your credit.
The Fair Credit Reporting Act requires that the bureaus investigate and remove items deemed to beÂ errors within 30 days of a dispute being filed.
Thatâs why itâs a good idea toÂ pull your credit reports â you can do so for free each year at AnnualCreditReport.com â and routinely review them for any inaccuracies that may be unduly weighing your credit down.
4. Clean up and Polish Your Credit Report
Once you receive a copy of your credit reports from the three major credit bureaus- Experian, Equifax, and Transunion, you can take a closer look at each item that is on there.
You have already read about getting an error removed, and this is a good step to take, but donât stop there. Look for accounts you have on your credit profile that show late or missing payments and verify the accuracy of each item. If you see something that is wrong, send your dispute so that the problem can be investigated.
5. Attempt to Pay Twice Monthly
Yes, you may be paying your balances each month, and you are paying them on time, but you need to keep in mind that your creditors are reporting your balances to the credit bureaus only once per month.
If you have a credit card, for example, that you are constantly maxing out and reaching your limit on throughout the month, the statement you receive will show the balance. You make the payment, but since it was reported only once that month, it is basically showing that you are using 100% of the available balance on that credit card.
If you send in payments twice a month, however, you are essentially breaking up your payments, and you are effectively keeping your overall credit card balances much lower than if you continue to only pay once per month.
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