Did you know that 22% of Americans don’t have a FICO score?
Your credit score is an indicator of your creditworthiness. It lets lenders know whether you are suitable to lend money to or not. If you don’t have a score, or your credit rating is bad, then you’ll struggle to borrow money when you need it.
But how exactly can you get yourself into the “good” end of the credit score range?
In this article, we’ll take a look at how you can improve your credit score fast.
1. Pay All Of Your Bills On Time
If you pay your bills on time, you won’t receive any penalties on your credit score. Black marks on your credit file will cost you in terms of your credit rating. In fact, one of the first things that credit bureaus will look at will be your payment history.
If possible, set up direct debits for all of your bills, that way, you’ll never miss a payment.
2. Pay More Than the Minimum Payment
If you have a credit card, making the minimum payment each month just won’t cut it. The minimum payment will only be enough to cover the interest on the debt. Ideally, you should try to pay your complete balance every month.
3. Take Advantage Of Programs That Boost Your Score
One of the fastest ways you can improve your credit score fast is to make use of programs that boost your credit score. With programs such as these, you get your own credit mentor to help communicate with lenders. See what’s included in one such program.
4. Only Apply for Credit When You Really Need It
Whenever you apply for credit of any kind, it leaves a mark on your credit file. For this reason, you should only ever apply for credit when you actually need it.
A single hard pull on your credit file will only damage your credit score slightly, however, if you make multiple applications in a short period of time, it will damage your rating.
5. Monitor Your Credit Rating
Keep an eye on your Equifax score. By checking your credit file, you’ll be able to see changes and problems. If you check your credit rating often, you’ll be able to address issues as they arise and challenge any mistakes on your file.
6. Work On Paying Off Debt
It may sound obvious, but paying off some of your debts will improve your credit rating. Tackle the debts with the highest interest rates first. Avoid moving your debt around as this won’t solve your problems.
7. Reduce Your Debt-to-Income Ratio
Your debt-to-income ratio is an important metric that credit bureaus monitor. Lenders use this ratio to decide whether you’ll be able to afford to make your monthly payments. Reducing your debt-to-income ratio by clearing old debts will help you to improve your credit score.
Improving Your Credit Score Fast-
To improve your credit score, you should pay bills on time, pay off debts to lower your debt-to-income ratio, make use of credit repair programs, and check your credit score often.
In addition, you should always pay more than the minimum suggested payment on your credit cards and only apply for credit when you really need it.
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