Improve Your Credit Score (Almost) Overnight

Improve Your Credit Score (Almost) Overnight

Have you been feeling frustrated lately because you keep getting turned down for a loan? Having crappy credit can lead to not being able to obtain the finer things like a home or new car. The main goal is to get your credit score into a good range, but it can take time. But, there are some ways you can get a better credit score in a shorter time frame. Here are some tips.

Get Errors Removed From Your Credit Report

The Fair Isaac Corporation states that a credit score over 670 is considered good. If you’ve just been turned down for a loan, the first thing you want to do is run your credit report and obtain your score. This gives you a detailed look at what may have affected the bank’s credit decision.

Is there something on there you’ve paid off recently? Or maybe a debt that isn’t even yours? If so, get it removed. Contact the credit bureau and file a complaint. If your dispute is valid, it will be taken off and your score will go up.

Be an Authorized User on Someone Else’s Credit Card

Your credit or FICO score is based on your:

  • Past 12 months of payment history (35%)
  • Credit mix (10%)
  • Duration of credit history (15%)
  • New lines of credit (10%)
  • Amounts owed on existing credit lines (30%)

If your score is low because of one or more of these areas, a fast way to bump it up is to become an authorized user on someone’s credit card account. As long as they have excellent credit, and the payment history is reported to the credit bureaus, it will reflect back on your FICO.

Lower Your Debt-to-Income Ratio

Your debt-to-income ratio or DTI is the amount of each credit card balance divided by the credit limit on each card.

Technically, it should never be over 43%. This accounts for 30% of your FICO. When you’re maxed out on your cards, your score will plummet.

Fix this problem by moving high balances to another card with lower interest. But be careful, because your FICO score is negatively affected by new lines of credit as well as hard inquiries. It will likely improve your score, but for the long haul, pay off your high balance cards to see a true rise in your credit rating.

Consolidate Your Credit

One way to improve your credit score quickly is to consolidate all of your debt into one lump sum. This is done through a debt consolidation company. Not to be confused with a debt management company that just works with your creditors. A consolidation program is an actual loan with an affordable APR that allows you to roll all of your credit balances onto one, therefore affecting your DTI ratio and boosting your FICO.

Using a combination of several methods is the best way to improve your score. While there is no secret method to getting a high credit score quickly, the ultimate solution is to pay your bills on time and work on a plan to eliminate your debt load.

~Here’s to Your Success!

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