If you need to improve your credit score quickly, there is no time like the present to get started. Here are some great strategies you can start right away to give your FICO the boost it needs.
Create Some Balance: While paying down installment debt (car, student, mortgage, etc.) will definitely boost your credit score, paying down or paying off revolving debt, such as credit cards, can cause a quick jump in your credit score. The trick is to get and keep your balances below your credit limit on each card. For faster results, attack those cards with balances closer to their respective credit limits first, as opposed to those cards with simply the highest debt. Remember, if you pay off any credit cards completely, do not close your accounts. Cancelling those cards may inadvertently undo all of your hard work.
Know Your Limits: Make sure your credit issuers are reporting the correct limits on all of your accounts to the three major credit bureaus. Without an available limit, your card will appear to be maxed out at its highest reported balance each month. This could cost you up to 80 points in certain circumstances. Some creditors such as American Express and certain cards issued by Capital One, actually have a policy of not reporting available credit. However, most companies will report your credit limits if you ask them in writing.
Take Some Credit: If you have a credit card account in very good standing, make sure that all three credit bureaus know about it. Just like your credit limits, some creditors don't report your information to all three credit companies - this is why credit scores vary between bureaus. If this is the case, give them a call to find out why. Correcting this oversight could provide a significant boost to your score. Also, if you are in good standing, ask your creditor for a lower rate or a higher credit limit. This will increase the gap in the debt you owe versus the credit you have available. Sometimes hinting about closing an account can suddenly bring out the generous spirit of certain card issuers. Give it a try. The worst they can say is no.
Protect your interests: Your credit is calculated based solely on the information available to your creditors. If you have a HELOC, make sure it is listed as a mortgage or an installment account on your credit reports and not as revolving debt. If you had a bankruptcy, be sure items associated with bankruptcy are being reported correctly, that is with a zero balance. This action should increase your score by 50-100 points. Because simple mistakes like these can wreak havoc on your credit score, it's important to monitor your credit every four to six months.
Even the score: If you find information on your credit report that you believe is inaccurate or incomplete, then you have the right to dispute it free of charge. For the fastest results, visit the appropriate credit bureaus Website and file a complaint on line. If supporting documents are necessary, you have to file your dispute by mail.
For filing disputes use our sample dispute letter. Don't delay. Get that credit score cleaned up pronto.
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