Fast and Easy Funds is an independent lender for small businesses and is aware that many people may not be as proud of their credit score as they would like to be. A survey from the National Foundation for Credit Counsel indicated that people would be more embarrassed to reveal their credit score than their weight. The good news is that it is possible to change your credit score fairly fastly, but keep in mind that “fastly” is a relative term. Any improvement can take 30 to 60 days to be reflected in your credit score. If you don’t act though, nothing will happen in regards to your credit score changing.
Fast and Easy Funds explains how the first step to taking action is to get a complete copy of your credit report. The three major credit reporting bureaus have to give you one free copy annually, so plan to order one every four months. Once you receive your credit report, use one or more of Fast and Easy Funds’ tips below to fastly raise your credit score, which has very influential power the financial actions that occur during your everyday life.
- Dispute any errors.
Mistakes happen to everyone. Fortunately, when it comes to your credit score you can dispute errors online through one of the major credit reporters. Once you have cleared up any errors, follow the next steps to see if there are any additional steps that you can take to improve your credit score.
This is life and things often come up that may make it difficult to make a payment to your credit card. You can ask creditors to “erase” the debt or any account that went to a collection agency. You can write a letter offering to pay the remaining balance, and in return ask the creditor to report the account as “paid as agreed” or even remove the mark altogether.
You can also ask for a “good will adjustment”. If you are a loyal customer with pretty good standing with one of your creditors, you can ask that the “missed payment” remark be removed from your credit report.
- Check your credit limits.
Fast and Easy Funds suggests that you make sure that your reported credit limits are accurate and not lower than they actually are. If your newly raised credit limit hasn’t been reported yet, request that this be done.
- Apply for a credit card.
Having a line of credit through a credit card provider can do great things for your credit score. You must be a responsible user of this credit though.
- Raise your credit limit.
Ask your creditors to increase your limit. You have to be careful though and responsible enough not to use the additional credit and increase your spending; otherwise, you could find yourself back in the same situation.
- Under use your credit available.
Do not whip out the plastic every opportunity. Credit utilization should never exceed 30% and ideally should be even less than that.
- Don’t close any lines of credit.
Canceling a credit card will cause your available credit to drop, which does not look good to the bureau. Pay your cards off, but keep them active.
- Pay your bills on time.
Payment history makes up a whopping 35% of your FICO score. Automate your payments if you are forgetful. You can even make double payments every month if you have the extra funds.