A Quick Easy Guide to Improve your Credit Score Fast
Here is Your Quick Guide for Credit Repair Tips.
So you want to increase your credit score without having to speak to a credit repair specialist.
Here are some step by step credit repair tips for repairing a credit report.
#1. This may seem like an over simplification but get in the habit of paying your bills on time.
This is one of the top go-to items that lenders look for in your credit report when you are going for that major life purchase,
like a home, a car or even applying for phone or cable service.
Can the lender rely on you to make your payments on time each and every month?
If the answer is NO then “Houston we have a problem.”
If you have two or more “lates” on your credit report it starts to raise a red flag,
that gets their attention to start digging deeper into your report with a suspicious mind.
Once a banker or a lender gets a suspicious mind, you are guilty until proven innocent in their eyes.
When you have a stack of bills piled up on your desk,
it is easy to miss the one due date at the bottom of the pile.
Hello Priority mail or overnight express mail if you still have the time.
Needless to say: Do as I say and not as I do.
Get in the life habit of paying your bills on time,
showing up for work or appointments on time,
and even making your bed everyday will help you with your mental discipline in the daily routines of life.
#2. Try to minimize or pay off your small balances on various credit cards.
If you have a number of cards containing small balances, paying off those small balances can improve your credit score.
If you are spreading your credit around, charging $30.00 on one card and $25.00 on another card, this can hurt your overall credit score.
It is best to just pay off those overall nuisance balances, clean up your cards and select just one or two cards for your purchases.
Just remember that you want to keep your total balance per card to no more than 50% of your
total allotted credit …
… and preferably no more than 30 % of your total allotted credit per card.
If you max out all of your cards, that again throws up another red flag to the lending Gods,
telling them that you cannot control your credit.
I will normally charge most of my purchases through my “Mileage Plus” card so that I can get the airline miles from my purchases.
Once that gets up to around the 30% level i will switch to a different card.
( Gosh, how I hate charging things on my card and not getting my airline miles!)
#3. As mentioned briefly above, keep an eye on your total debt per card.
by keeping your total debt per card to 30% or lower.
The lenders will look at how much revolving debt that you have versus how much you are using.
Try to keep those balances low by paying down the balances on your cards.
This is what the lenders call your “Utilization Ratio”.
A fancy term for how much credit you have versus how much you are using.
If you are completely maxed out on all of your cards… it doesn’t look good.
If you are in this situation, with multiple maxed out credit card balances,
then you might want to consider consolidating them with either a personal loan or a debt consolidation program.
If you find yourself stuck, maxed out and mired in debt then you might want to
speak with a Credit Repair Specialist to help get you back on track.
#4. Avoid unforced errors:
You have to understand the mind set of the banker or lender.
They have a very low tolerance for any kind of risk.
They have been burned too many times in the past.
They have been there, done that and can see all of the indicators of a shipwreck ahead.
Aside from not missing any payments that we have already mentioned,
they may also look into cash advances, or even a divorce.
The bottom line is, that you don’t want to give them any reason ( excuse) to deny you credit.
#5. Don’t be in a hurry to clean up or erase old debt that you have paid off.
Some people think that by eliminating old debt on your credit report will help your score.
Any old debts that you have paid off help create a history of responsible debt payments.
By leaving old debt and the accounts that you have paid off in the past will improve your credit score.
The bad or negative items will eventually fall off of your credit report after seven years.
The good debt that you have paid off shows the lender that you are a responsible person and is like having straight A’s on your report card.
It shows your history ( the longer the better ) and will only make you look good in the eyes of the lender.
The longer you have a history of good / paid off debts the better for your overall credit score.
#6. Be careful with your inquires.
If you are shopping for a mortgage, student loan of even a car loan you want to make all of your inquires within a short time span of say 30 days or less.
Depending on the software your lender is using, it will usually discount multiple loan inquires within a short time span as shopping for one loan.
If you spread your loan requests over a longer period of time your FICO score may be affected and get knocked down due to the number of inquiries.
Just know that in general a large number of inquiries will negatively effect your credit score.
What is the Bottom Line?
Managing your credit score is just an extension of managing your personal finances.
A good to great credit score will help in many ways including lower interest rates on many purchases.
If you are thinking about a big ticket purchase sometime in the near future you should check your credit score just to know where you are at.
Everyone in America is entitled to a free credit report once per year from the three main credit report bureaus, Equifax, TransUnion and Experian.
You can access your free credit report once per year through www.annualcreditreport.com.
You can check you credit for free at anytime through www.creditkarma.com.
While Credit Karma is not always 100% accurate it will give you a ball park number from which you can work with.
If you keep on top of your credit report, pay your bills on time and keep your total credit usage per card to 30% or less you should enjoy a high credit score.
Beyond that, if you can pay off all of your credit cards in full,
you will enjoy a much less stressful and happy life without the worry of compiling credit card debt.
Disclosure: We are a professional review site that receives compensation from the companies whose products we review. We review each product or service thoroughly and give high marks to only the very best companies. We are independently owned and the opinions expressed here are our own.