March 25th, 2017 8:35 AM by Jackie A. Graves, President
If raising your credit seems impossible, take a step back
from the big hairy goal and tackle the beast one step at a time. -
There’s no "instant" button, but
there are things you can do now that will help increase your score.
we get started, there’s a big ugly truth to face: There’s no quick fix
for your credit.
reset button sounds tempting — especially when faced with a less than stellar
credit score — but building your
credit is a marathon affair. There’s legwork involved in
netting that higher number.
that that ominous forewarning is out of the way (phew),
on to the good stuff: actionable tips to raise your credit score
swiftly and without financial risk. You can expect most of these tips to
affect your credit score in about 30 to 60 days, the typical time that’s
How to raise your Credit Score
raising your credit seems impossible, take a step back from the big hairy goal
and tackle the beast one step at a time.
first things first!
Request a copy
of your credit report and look for errors
2013, the Federal Trade Commission shared findings that roughly one in five consumers carries an error on their
credit report. Find an error? Dispute it. Removing negative marks made in error
will help you return to your correct score.
negotiation letter to your credit bureau
yet, contact the company reporting a late payment to ask if it will campaign
for the removal. If a payment was incorrectly reported (see above), or if you
simply forgot a bill when you’re usually 100% on the ball, you may be able to
get the late payment removed.
credit utilization to decrease your debt-to-credit ratio
you can lower your credit utilization rate two ways:
Lower your spending.
Increase your credit.
credit is largely determined by the amount of debt (credit
card and loans) compared with your credit limits. Go back through your spending
and consider whether you’ve spent more than the recommended amount of your
credit line (generally around one-third of the limit).
you can request an increase in your credit or open a new card
as a way of increasing your credit-to-spending ratio, but this is a risky
move if it also results in an increase of spending. Be wary of raising limits
if it wouldn’t be financially feasible to pay back any and all spending.
apply for multiple forms of credit in a short time
time you request a new form of credit, including car and home loans, etc,
you’ll likely face a credit inquiry. Too many inquiries within a short
time, and the credit bureaus may ding your credit.
this in mind as you request increases to your credit or open up new cards. Both
actions may result in one too many credit pulls and consequently, a decrease in
your credit score.
payments — then automate your payment schedule
bill pay is gut-wrenching when you’re financially strapped, but proactively
settling bills will make future payments easier.
bureaus count a late payment starting from the first day of your last late
payment, so the sooner you can square the bill, the better. This is
particularly true if you can pay off past-due debts before they reach the
30-day, 60-day, or 90-day thresholds. It’s scary to confront the financial
challenge, but it’s doable.
you’ve settled any late payments, make future payments even simpler by
automating. Automation avoids accidental missed payments and takes the mental
clutter of scheduling multiple payments off your mind.
Building credit builds long-lasting habits
the daunting task of increasing your credit score with the long-term-training
mindset helps you build long-lasting habits that strengthen your financial
Claire Murdough - To view the original article click here