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Improving Your Credit Score: Ways to Do It Quickly

Updated: Apr 29, 2023

If you have been denied a loan or a credit card, it may have something to do with an important number that determines your creditworthiness. This number is called your credit score. This number is what creditors, such as banks and credit card companies, will look at to know if you will possibly pay them back.

They get these numbers from credit reporting agencies that also get information of your credit history from the past creditors you borrowed money from. If you haven't been able to pay your bills on time, it will lower your credit score. A bad or low credit score will lessen your chances of getting the best credit card and loan deals.

It is a fact that many people don’t know that creditors have access to this information. However, you have to realize that this information will act as a security for whether you are a creditworthy person.

Through this information or through this simple three-digit number, creditors will decide whether or not to get you approved for the credit card or the loan you are applying for. Sometimes, having a low credit score can get you a credit card or a loan. However, it will usually have higher interest rates because you will be deemed too risky to lend money to.

Because of this, you should try to improve your credit score in order to gain access to the best loan and credit card deals possible. You should also realize the fact that having a bad credit score will also mean that you will have difficulty accessing simple technology, such as getting a phone line hooked up in your own home. This is because more and more phone companies and other utility companies today also look at a person's credit score to ensure you will likely pay the monthly bills.

So, here are ways you can improve your credit score quickly.

If you have a meager credit score, ask for a credit report from the three major credit bureaus. Doing this lets you know about your credit history, compare each report, and determine if it contains errors that may hurt your credit score.

For example, if you notice that a particular report contains an unpaid debt you previously paid, you must correct the error by sending a letter and proof that you paid the debt in full. Errors like this will lower your credit score. By doing this, you will be able to raise your credit score in a matter of thirty days. You should realize the fact that credit bureaus are responsible for correcting any mistakes in your credit report, and you should also know that it is in the law that they should.

The next best thing you need to do is pay down the debt you have. For example, if you have credit card debt, you don’t have to pay all of it at once. The point to all this is to pay down your credit card debt until it does not have a balance exceeding 50% of your credit limit.

Improving your Credit Score is Just Three Steps Away

Credit scores could be dire stuff to talk about, especially if you have been a "cold cash patriot" for quite some time now. Why talk about credit score if you can afford to purchase a real estate property using thick bundles of 100-dollar bills? It is just a waste of time, and you would not be interested in dealing with credit scores or their attributes.

That is, if you have plenty of cold cash to spend. But what if the time comes that you do not have even a single dime at all? Do you think a credit score is still dire stuff to talk about? Think again: maybe this is the right time to talk about credit scores not just by an "inch below the water" but "at least six feet underground".

Keep in mind that your credit score could be your "best friend" or the "worst of your enemies". The higher your credit score is, the higher the chance you have to qualify for loans and credit cards with lower interest rates and more accessible terms of payment. The lower the interest rate, the more savings you can generate in the long run. And that is a good thing.

On the other hand, the lower credit score will give you headaches, making it difficult for you to secure a loan or credit card, not to mention the higher interest rate applied in case you will be able to qualify for a loan or credit card. Thus, possessing a lower credit score will give you a headache and make you dig into your pockets beyond the limits.

At this point, you should consider improving your lower credit score. You can take several options, yet you are just three steps away from improving your credit score. How will you do it? Take a look at the following and make sure you will be able to follow them.

1. Inspect your credit reports for any inaccurate entries. Keep in mind that errors in credit reports are very common. Thus, it is recommended that you examine your credit reports at least twice a year. In this way, you will be able to pinpoint any mistakes and fix the problem before it can do serious damage to your credit performance. You can obtain your credit reports from the three major credit reporting agencies in the United States.

2. Always pay financial obligations on time. Do not underestimate the value of making payments on time. Keep in mind that one of the major factors that can affect your credit score is your habit of paying your financial obligations. If possible, pay your bills ahead of the scheduled due date. If you have problems in making payments on time, you may also consider an automatic mode of payment.

3. Use credits on a minimum basis. If you are using credit cards, avoid making purchases beyond your credit limit and attempt to keep your balances at bay—let us say around 25 percent below your credit limit. It will help you avoid accumulating huge debts that may come from unwanted purchases using credit.

A credit score is vital, especially if you plan to secure future loans. Thus, if you have a lower credit score, do not waste time, and follow the aforementioned three steps to improve it. Make your credit score an asset and not a liability.

Lastly, the most important thing you can do in order to raise your credit score is to pay all your bills on time. By doing this, the creditors will not report any negative things about your credit activities. By paying your bills on time, you will be able to raise your credit score. This is the quickest way to improve your credit score.


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