| Author: L. Sampson |
Many people have credit scores that are less than perfect. To date, there are over 30 million people in the U.S. alone with severe credit blemishes. Though it is a common problem, a bad credit score can prevent you from getting a loan or credit card that has reasonable terms. If you need to raise your credit score fast, here are three things to try:
Reduce the Balance on Your Credit Cards
Making installment payments on your loans can help raise your credit score, but reducing your credit card balances can help raise it even faster. Credit card balances are an example of a revolving account. Revolving accounts only look good if there is a large gap between the amount of credit you are using and the available credit limit. If possible, try to get your credit card balances reduced to less than 30 percent of your credit limit.
Check Your Credit Card Limits
Because many credit card companies, such as American Express and Capital One, do not officially report your credit limit to the credit bureaus, the bureaus use your history purchases to determine what your limit is. For example, if your credit card has a limit of $3,500, but the most you have ever charged is $2,500 the bureau will assume that $2,500 is your charging limit. If you have a habit of charging this amount on your card every month, it may look like you are constantly maxing out the card'even if you pay the balance. To remedy the situation or to quickly raise your credit score, ask your credit card company to update your limit information with the bureau or pay your balance before your statement period closes.
Dispute Old Negatives
Just as you can dispute errors on your credit report, you can also dispute negatives. This can sometimes be the easiest way to raise your credit score fast. Often times, collection agencies and lenders have moved your information around so much that their records are a mess. If this is the case, they may not bother to pursue a situation or dispute. If they no longer want to make the effort to collect the money, the negative item can be dropped from your report. |
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