There are five easy ways to increase your credit score, which can be achieved in less than 30 days. When it comes to getting ahead having good credit is necessary for life financial success. To finance a house, car, furniture, or even rent an apartment or just about anything “having good credit” will determine if you will be approved in the application process.
The reason credit is important is that it helps lenders to decide whether to approve a credit agreement or decline your request. What lenders are evaluating in the application process is your creditworthiness. Having a low credit score suggest to a lender that you will be a higher risk and a higher credit score is the opposite. Most people with a higher credit score are more likely to make payments on time.
It’s a good idea to check your credit score at least once a year. Often consumers are shocked to learn that public records are reported on their credit reports, including any debts owed to the government. Fines such as parking tickets and library balances can also show up on credit reports. When you move remember to notify the U.S. Postal Service of a change of address, that way you will not miss important public notices.
Check your credit report for free at Annual Credit Report, the only source for your free credit report authorized by Federal law.
Five Easy Ways To Increase Your Credit Score
There are five easy ways to increase your credit score and it can be easily accomplished in less than 30 days. So if you don’t have credit which means that you are “unscorable” which also means you have an insufficient credit history or lacking enough recent credit history to review. This is not a good thing and having no credit can harm you financially down the road. Like when you are ready to get a new job or car insurance, many employers and insurance companies review credit to determine if a person is a good candidate for employment or for insurance coverage. By now, you should gather just how very important credit really is and why you should strive to build a good credit history profile.
First, Get A FICO Score – A FICO score is a fast solution to increase credit in 30 days. Which there are three minimum requirements to generate a FICO score. Most mortgage lenders will not approve a loan application without a FICO score.
- Have an active credit file that suggests that you are not deceased.
- Maintain at least one open account for six months or more.
- Must have one account that has been reported to the major credit bureaus such as Equifax, Experian, and TransUnion.
Second, Dispute Negative Information – Negative information appearing in a credit file can be permanently removed. Many times creditors are not accurately reporting information in credit files. When challenged with the right statute violations this information can be removed permanently. Once a credit dispute is received credit bureaus have only 30 days to investigate disputes.
Download Credit Audit Training Forms a DIY method to dispute negative information and remove it from your credit file permanently.
Third, Always Pay On Time – Paying bills on time and never late is the best way to maintain and keep a good credit score. As payments are reported monthly and having no late payments will help improve a credit score each month. Payment history accounts for 35% of a FICO score, why paying bills on time is essential.
Fourth, Keep Balances Down – Never allow credit utilization to increase above 10% percent of credit limits. Make sure the amounts owed on credit limits does not increase above 10% percent of total credit limits. Try to pay down balances below 10% of credit utilization, this will increase a credit score very fast. Credit utilization accounts for as much as 30% of a FICO score.
Fifth, Never Open Too Many New Accounts – It’s tempting to open a new account through credit preapprovals and preauthorizations. However, opening too many new accounts at the same time will harm a credit score. It signals to lenders that a consumer is shopping for credit. Hard credit inquiries can drop a credit score between as much as five to ten points. Opening too many new accounts will show multiple inquiries on a credit report. Credit inquiries account for 10% of a FICO score.
You don’t have to pay expensive credit repair companies monthly to fix your credit. Most of the time these credit repair companies are sending simple templates that are often ignored by credit bureaus. Many of these credit repair companies are operating an assembly line production like robots with templates and signature stamps. Credit repair companies don’t want consumers to know how easy it is to use statute violations to remove negative information permanently, which is why they don’t allow consumers to sign dispute letters and have them sign over power of attorney “they are only interested in making a profit” often ignored by credit bureaus because it doesn’t look like it came from the real person doing the dispute.
Educate yourself on how to repair your own credit and remove negative information using training to create custom one-of-a-kind credit dispute letters.