3 Ways To Quickly Raise Your Credit Score
Your credit score works as a major force your adult life. Your score can make getting a house easier or more difficult, and it can determine your interest rates on your credit cards. According to the Washington Post, the majority of adults in the United States have subprime credit scores. For those of you with less than perfect credit, then it is time to give that number a sharp increase. This blog post will tell you some of the ways that you can quickly raise your credit score.
Clear Up Your Consumer Report
Visit AnnualCreditReport.com to request your free credit report from the TransUnion, Equifax, and Experian credit bureaus. Every person can order one free credit report every 12 months. Once you put in the request, print out the report or save it on file on your computer. When you get a hold of your report, examine it with a fine tooth comb. You will want to look for delinquent accounts and bills. If the information on the report is not correct, the report will tell you how to dispute the negative mark.
A clean credit report not only means great things for your credit report. It can also affect your job prospects. Nowadays many employers will pull the credit reports of applicants. A low credit score can mean that a potential employer will pass on your application.
Keep Your Credit Balances Low
myFICO, the company that gives us the most widely used credit scores of Americans, says that they base up to a third of your credit score on the amount that you owe on your revolving credit accounts.
But it's not all about what you owe. Your credit score also comes from your credit utilization, which is the ratio of the amount you owe compared with your current credit. If your credit limit equals $15,000 and you end up with a $7,500 balance, the credit utilization would come out to 50 percent. If you spend the entire $15,000 in your credit limit, then your credit utilization would be 100 percent. Experts say that you should not use more than 30 percent of your limit.
If you've spent above 30 percent of your credit limit, work hard to pay down that balance. Cut costs for a couple of months by eliminating take out meals and fast food deliveries, movie nights at the cineplex with friends, and unnecessary sessions of retail therapy. Sell some items you no longer want or get a second job if needed. Paying down your credit accounts can raise your credit score in mere months.
Negotiate Your Credit Balances
Your credit score might have gone down because you have an account or two in collections. While you can't erase them from your report if they're correct, you can significantly raise your credit score by attempting to settle them. Many debt collectors will accept an amount that is far less than what you owe to settle the account. Just ensure that you get any agreement in writing.