It doesn’t take long to figure out how important having good credit is. Your credit history can essentially determine whether you’re approved for a credit card to how much interest you’ll pay for a car or home loan. When your score is low life can get a bit more complicated and a lot more expensive – which is why so many consumers try to make improvements. If you happen to be one of them, chances are you want to improve your score as quickly as possible. Here are some effective solutions.
Tackle High Balances and Collection Accounts
There are a number of factors that contribute to your credit score but having accounts with high balances or that are in collections can do you in the fastest. To try and undo the damage done here, you’ll want to try and tackle these accounts first. Contacting creditors to make a large lump sum payment to settle the account or lower the outstanding balance can raise your credit score quickly. If it’s a good settlement amount and you don’t have it all upfront, you could try applying for quick installment loans to get the negative account off your credit as soon as possible (just make sure you can afford to repay the loan).
Become an Authorized User
Do you know someone who has great credit that wouldn’t mind lending you a helping hand? If so, you might ask them if you could become an authorized user on one of their credit card accounts. Even if you never actually use the credit card yourself, just being attached to someone else’s positive credit status can help to boost your score.
Get Rid of Discrepancies
Lots of consumers aren’t aware of the data being reported on their credit history – until they need to use it. Unfortunately, not all information reported is accurate and if it’s a negative reporting, it could be doing damage to your score. You can immediately turn things around by disputing any discrepancies you find on your report. If the information is misreported or even worse, the account isn’t yours this needs to be reconciled so that your score improves. You can file disputes for free with each of the major credit bureaus.
Open a New Account
Though you have to be careful how many new accounts you try to open when repairing your credit, sometimes having a new account can boost your score. This is especially true for individuals who have one or two low-balance accounts on file but haven’t opened a new one in the past six months or more. Be sure that whatever type of account you open that you use it responsibly to avoid making matters worse.
Your credit history and score impact your life in more ways than one. Bad credit can prevent you from getting a loan, buying a house, renting an apartment, or landing a job. It can also result in the need to pay higher interest rates and larger deposits for products and services. If your credit score is making life more challenging, the above-mentioned steps will help to boost your score within a few months.