Fastest Ways To Increase Your Credit Score?

Discover the best strategies to boost your credit rating.

Lower Debt

One of the fastest ways to increase your credit score is to simply lower your debt. I know this is easier said than done, but it still is the fastest ways to increase your credit score. One thing that I recommend is to pay off as much of your debt as possible. Most people think that paying off credit card debit is impossible, but the truth is that it’s very easy once you know the proper way to pay off your debt.

Tip: I highly recommend paying off your lowest credit card amount first and then rolling that monthly amount into your next highest account. By doing this you will see quick results and thus you won’t quit paying off your debt. This method is called the debt payment snowball.

Decrease Debt To Credit Ratio

As I told you before, having a lower debt to credit ratio is one of the best ways to increase your credit score. The reason this increases your credit score is because it shows lends that even though you have a certain amount of credit, you only use a portion of it. The two fastest ways to lower your debt to credit ratio is simply pay off your bills and also increase your credit card limits. If you can do both of these at the same time, then you should see a slight jump in your credit score next month. Also, lenders like to see that your debt to credit ratio is less than 30%.

Don’t Open Or Close Accounts

Being that more credit and not as much debt is good, does that mean opening up another credit card would be a smart idea? Well, not this is actually a terrible idea. The reason why this is not a smart idea is because the newer your account is, the less weight it has. This is why you should not open or close accounts. Some experts say closing accounts is better than using them too much and letting them go into default, which is true, but just hiding your cards and not using the account altogether would be the best option for you.

Tip: Don’t open or close more than 1 account every 3 months.

Under-Use Your Cards

This is technique that is commonly recommended. By under-using your cards you will keep an open and active account, but it minimizes the risk that you will spend to much. Something that I recommend is to use every one of your cards at least once every 3 months. By doing this the creditor will think that you still need them, thus not lowering your credit limit, but while using them you won’t struggle to pay them down/off. Trust me, under-using your credit cards is so simple and beneficial that it doesn’t make sense not to do this.

Negotiate With The Creditor

This is where many people get mixed up. I am not telling you to negotiate your interest rate with you creditor, I am talking about negotiating that amount that you owe. In some cases you can do a debt settlement, but that is not what I want you to do. What I want you to do is call your creditors and tell them that you would like to pay of 80% of the balance. If they accept the fact that you will only pay them 80% and the rest will be wiped clean, then you will get out of this fine. The reason why I suggested doing this is so that you can lower your debt without having to repay the entire amount.

Tip: Before you go through with this make sure the creditor will report to the credit bureau that you paid the balance as agreed. You don’t want them putting any marks on the report saying that you settled for a smaller amount.

Pay Bills Twice A Month

Many people see this and thing that they have to pay twice as much, but that is not the case. What I suggest is that you divide the monthly repayment by 2 and then pay that every 2 weeks. The reason you do this is not only to lower the amount of interest you are charged, but to show that you make multiple payments each month. Your creditors will like the fact that you are making more payments, even though the amount is still the same.

Fix Any Errors in Your Report

I should not have to tell you this, but you would be surprised how often people overlook this method. By simply fixing the errors in your credit report you will increase your credit score and firm up your credit history. If you make a payment and one of your creditors said you didn’t, then prove them wrong and get them to fix that error. If you opened up a credit card 2 years ago and your creditor has it as 15 months ago, then get that fixed. Errors both big and small will play a role in your overall credit score, so fix them as quickly as possible. You may even wish to invest in a credit repair service like Sky Blue Credit Repair (see full review here).