3 Ways to Raise Your Credit Score Today
Rebuilding bad credit can take a few months to a few years, depending on the how bad the damage is. But whether you have a minor bad credit loans problem or a serious, the best thing to do is to act now and start improving your credit one step at a time. It doesn’t matter how low your present credit score is, the important is thing is to know the right steps that you can do to raise that number. In this article, let’s discussthe top three ways you can do to raise your credit score. Correct glitches in your report. Finding errors in your credit reports is actually not a rare case. A lot of consumers discover wrong information or incorrect charges in their reports upon checking them. Sometimes, another person’s credit file may get mixed into your file which can cause your score to drop. The good news is that you can do something to fix those errors. First, order a copy of your report from each of the three major credit bureaus. Since each bureau does its own reporting, it’s best to check the accuracy of all your three reports. Once you receive your copy, carefully examine the document and look for possible inaccuracies. In case you find any, you should write a credit dispute letter and send it to the bureau that issued your report. Be sure to send your letter through registered
mail to make sure that it will reach the bureau. You may need to wait for 30 days before the investigation is completed. If your complaint is found valid, you will be sent an updated copy of your report for free. The bureau must also contact the other two credit agencies regarding the corrections made in your file. If your dispute is found void, the bureau will notify you about the result of the investigation. Pay your debts. If the charges in your report are correct, then the best way to raise your score is to pay your creditors. Since 30% of your score is based on your credit utilization, your goal should be to pay down as much debt as you can and lower the percentage of your used credit. If it’s not possible to pay all your creditors at once, check your highest rate debts and pay these first. Find possible solutions to pay your debts as soon as you can. For instance, you should try negotiating with your creditors as you may be able to request for a lower interest rate or for some of your fees to be waived so you can have a better chance of catching up with your payments. Avoid incurring new debts. Your top goal is to pay off your debts and free up as much credit as you can. Certainly, this is not the best time to start applying for new fast loans or new credit. If you own credit cards, be doubly alert on how you use them. If you must use your credit cards to prevent your accounts from getting idle, use them only for minimal purchases that you can pay in full. This way, you won’t have to pay the interest rates and late fees. Most importantly, you can avoid inflicting more damage to your credit history.