4 Ways to Fix Your Credit Fast

| Updated on August 24, 2023
Fix Your Credit Fast

Having a good credit score is critical for your financial prosperity. It will allow you to pay reduced financial charges on loans and credit card balances. Besides, a good credit history puts you in a better position to have your loan applications approved. It also allows you to access loans at reduced interest rates since it puts you at a vantage point when negotiating for more loans at reduced costs. Besides increasing your loan limits and enhancing a good credit rating, it gives you a head start in approval when negotiating rental and apartment houses. 

To fix your credit rating fast, start by paying all your outstanding bills on time. Also, you must understand the special circumstances that may be impacting your credit rating and review your credit report. Ultimately, direct your effort to fix all the issues you have identified. 

Indeed, having a good credit score report allows you to enjoy numerous services. It enables you to qualify for favorable telephone contracts such as post-pay services and discounts when you buy the latest phones. It also protects you from the need to pay huge security deposits on utilities when you move to new facilities. So if you have a bad credit rating, the best thing to do is to work on it. Here are the 4 ways credit repair can help you to quickly fix your credit rating. 

1. Check Your Credit Score and Review the Report

The law requires that you get a free credit report from each credit score reporting agency every year. So, the first thing you should do is to get the report and review it carefully. If you identify errors, ensure to dispute them. Check for misspelled names, wrong addresses, and accounts belonging to other persons with whom you share the name. Also, check out for debts listed twice, accounts with incorrect balances, and closed accounts that are still reported as open. Also, check out accounts with incorrect credit limits or balances.  

Ensure to notify the credit report agency of outdated information and have them expunged from the record. Having faulty and erroneous information removed will help to improve your credit score.

2. Dispute Any Errors and Sign for Experian Boost

If there are many errors in your credit score, getting approved for a loan is difficult. But bringing such errors to the attention of credit bureaus can help you have the problem sorted out. Once the errors are removed, the next thing you must do is find a way to boost your score. You can do this by simply signing for Experian boost. You will then need to ask your potential lender to pull your report using the Experian boost plan. This plan is simply a hybrid model that relies on alternative credit data to give the lender more insight into your creditworthiness.

3. Pay Outstanding Bills on Time

The borrower’s payment history is vital and constitutes 33 % of the credit score. So, the first step to fixing your credit score is to streamline your monthly payments. But it may be a challenge for you to pay all the bills at once, so if there are any bills you are not paying, starting to pay them will put you on the right track. In some cases, initiating auto pay could be helpful. The best way to do this is to talk to your creditors and agree on a payment plan. You may set up a budget and put autopay procedures in place. Also, you may try to consolidate all the debts to make payment easier and hustle-free.

If the credit card debt is part of making your credit score fall, start by paying the high-interest debts first. It helps to reduce the total debt you owe. Also, ensure you clear small debts first so that they get reflected in your report.

4. Keep Credit Utilization Below 30%

The credit utilization ratio is found by comparing credit card balances and the overall credit limit. It evaluates how well one is managing their finances. It is considered good if the ratio falls between 0 and 30 %. For instance, if you have two cards and one card, the credit card limit is $2,000, and your unpaid balance on the card is $300, then the utilization ratio is 7.5 % which is fairly good.

Thus, if you want to improve your credit score, get your report and identify all the errors. You will then need to dispute the errors identified. Lastly, identify and pay outstanding bills and try to keep the credit utility below 30%.

Joseph Williams


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