Desperately want to raise your credit score in 30 days? Don’t know how to repair bad credit fast?
Don’t worry because today in this post we will be revealing to you simple strategies that will help in improving your credit score instantly.
When it comes to repairing a bad credit score, there are a few things you can do to help speed up the process.
First, you need to understand what is causing your credit score to be low in the first place. Once you know the reason, you can start taking steps to improve your credit rating.
What Things Can Cause a Low Credit Score?
There are a number of reasons why someone might have a low credit score. Perhaps they have never had a credit card or loan and therefore have no credit history. Maybe they’ve missed payments on previous loans or had to declare bankruptcy.
Whatever the reason may be, having a low credit score can be costly and make it difficult for you to get approved for a mortgage, car loan, or any other type of financing.
6 Ways to Improve Bad Credit Score Fast
1- Check & Dispute Credit Report Errors
Each year, Americans submit more than 200 million credit reports to the three major consumer credit reporting agencies, TransUnion, Equifax, and Experian. These reports are used by lenders to decide if they are approved for a loan and what interest rate they have to pay, even if they have rented an apartment.
But what if the information on the credit report is wrong?
A recent study by the Federal Trade Commission found that one in five consumers have an error on their credit report. This can lead to all sorts of problems, like being denied a loan or being charged higher interest rates.
Such an error can exist in your credit report too so the first step is to find one and dispute it. You can do this online by checking out your credit report at annualcreditreport.com. The credit bureau will then investigate and correct any errors.
2- Get Your Credit Limit Raised
A higher credit limit will show creditors that you are capable of handling more debt. It will also increase your credit score because your utilization ratio will decrease.
Here’s a simple scenario to make you understand this:
Suppose, you have a credit limit of $7000 and you have utilized $3500 of them then it means that your utilization ratio is 50% and that will cause you a bad credit score.
However, if your credit limit is raised to $12,000 then the utilization ratio of the same amount ($3500) will be under 30% and that will have a significant positive impact on your credit score.
Keep in mind that not all creditors will be willing to increase your limit, and some may even decline your request. But it’s worth a try, and if you are successful, you’ll be one step closer to getting the loan you are applying for.
3- Apply for Another Credit Card Account
One out-of-the-box way to get your credit score improved is to open a new credit card account. You don’t necessarily have to use the card, but simply having it in your name will help improve your credit score.
Just get the credit card and don’t carry any balance on it. By doing that your available credit will automatically increase with the credit limit of your new card.
You need to make sure that the card you choose has no annual fees. However, cards that don’t charge annual fees usually have higher interest rates but you don’t have to worry about it since you don’t carry any balance.
No balance, no need to pay the high interest rate!
4- Always Pay Bills on Time
If you’re looking to improve your credit score fast, one of the best things you can do is make timely payments on your bills.
This includes not only your monthly bills but also any debts you may have. Payment history is a major factor in credit scoring models, so by making on-time payments, you can boost your credit score instantly.
If you don’t have any late payments, your debt-to-income ratio will look better and lenders will be more likely to give you a loan.
5- Become an Authorized User
One secret way to repair bad credit fast is by becoming an authorized user of someone else’s credit card account. Authorized users are people who are not the primary account holder but have been added to the account by the primary account holder.
Being an authorized user cannot just help repair your credit score because it also shows that you have been responsibly using credit. It gets more effective if the account has been open for a long time and has a high limit. If you want to become an authorized user, talk to the person who holds the primary account on the card.
6- Consult a Credit Counselor Online
Looking for the fastest way to build credit without messing up with your existing credit history?
Well, you can consult a credit counselor online and he will guide how to do it. There are many credit consulting and advisory services that you can hire online such as Lyn Financial Services and discuss your credit issues with them.
The best thing about hiring a credit counselor is that he creates a customized plan for you to repair bad credit score. Moreover, he can help you out in budgeting your personal finances.
One thing that you might have in your head right now is “I can do it all to repair my credit score so why hire and pay someone for that?”
Well, it’s like being overweight and thinking daily that you can pull off dieting and training on your own but not being able to do that. Until you get a fitness trainer who creates a dieting and workout plan for you and helps you stick to that.
That’s why it’s better to get a credit counselor on board.
Frequently Asked Questions (FAQs)
What is a bad credit score?
A bad credit score is typically a credit score that falls below 580. A bad credit score can make it difficult for you to get a loan, rent an apartment, or even get a job.
What causes a bad credit score?
A bad credit score can be due to a number of reasons. However, non-payment of bills on time, not paying back loans, or having too much debt are some of the most common reasons why someone can have a bad credit score.
What score is a good credit to buy a house?
Most lenders will want to see a credit score of at least 620 before they will approve you for a mortgage. However, there are some lenders who will work with borrowers who have a credit score as low as 580.
What score is a good credit to buy a car?
A car is a big purchase, and it’s important to have good credit to get the best deal. What’s a good credit score to buy a car? The answer depends on the lender, but most say that a score of 660 or higher will get you the best interest rates.
How can I raise my credit score in 30 days?
There are a few things that you can do to raise your credit score like paying down your debt, avoiding late payments, and raising your credit limits. However, if you want to raise your credit score fast in 30 days, it’s better to consult a credit counselor and he will guide you about that.
Can I pay someone to fix my credit score?
Yeah, you can hire a credit counselor like Lyn Financial Services and pay them to fix your credit score. The credit counselor will discuss the finances with you and will help you in managing money and debt in a better way.
How much is it for someone to fix your credit?
A credit repair company usually charges around $20 to $150 per month for their services. However, the charges may go higher than that depending on the financial situation and how bad your credit report is.
