How to Build Your Credit Faster
And Improve Your Score in 30 days!
Have you tried to get a credit card without any credit? Do you have credit but need to raise it quickly for an important purchase? What about a new employer that wants to check your scores? How do you build your credit fast from either non-existent or poor?
Fortunately, I can show you the ways! Here goes…
Everyone is entitled to one free credit report per year. There are 3 major reporting agencies in the U.S. to pull them from Equifax, Experian, and Transunion. While the report won’t give you a current FICO score, it will show you accounts, payment status, and a lot more. You can retrieve a report from www.annualcreditreport.com. The first thing you need to do is review this list and look for any errors. Did Verizon report that you made a late payment when you didn’t? Dispute it! Turn around times for disputes vary, but is usually around 30 days.
1. Correct any errors on the credit report.
Contact creditors that are reporting inaccurate late payments or defaults. Most reports will include contact information. If your account has been transferred to a collection agency, you’ll most likely have to talk with them. NOTE: Depending on your state’s laws, you may be able to remove old accounts from your record without paying the past due balance. Many states will remove collection accounts after 7 years.
2. Become an authorized user.
If you have a credit-worthy family member or close friend, you can become an authorized user on their account. This will show more on-time payments as well as raise your available balances, lowering your debt to income ratio.
You must make sure that the card is active and used regularly in order for it to help.
3. Raise your available credit.
You can request a higher credit limit with your current creditor. The does the same as #2, but with your own accounts. (Before you do this ask your credit company if they pull your credit before upping your limit. If they do, this will temporarily lower your credit before it goes back up again.)
4. Offer in Compromise.
Defaulted cards are one of the worst blemishes you can have on your report. But you can ask your creditor if they’re willing to take $x.xx as a partial payment and mark it as paid. Many times when you’ve had an old account the card issuer will be willing to take anything rather than nothing. If they don’t like your offer, ask them if there is an amount they would be willing to take.
DO NOT MAKE A PAYMENT WITHOUT A CONFIRMATION IN WRITING!!! Today you have to get everything in writing for your own protection…I’m speaking from experience here.
If you’ve been a long time customer ask if they’ll give you a “forgiveness adjustment“. A lot of creditors will remove a few late payments for the sake of keeping a long-standing client happy.
More Ways to Raise Your Credit Score Fast
Credit scores are established over time. Although there are methods to improve a credit score fast, re-establishing a good score takes consistent behavior and time. Factors that influence a credit score include:
• Credit payment history
• Length of credit history
• New credit accounts
• New credit inquiries
• Credit accounts in use
Here are three more ways to boost a credit score over the long term:
1. Make your payments on time.
The title’s pretty obvious. Make sure you pay ALL your bills on time.
2. Reduce debt-to-income ratio.
If too much money is going towards existing obligations, a creditor may decline a loan. To increase a debt-to-income ratio, do not add more credit card debt or take out any more loans. (But keep your cards between 15-30%.)
3. Have a good mix of debt types.
If all debt is one format, it may appear to a lender that you are getting denied for other types. Mixing loan types (secured and unsecured) may result in a more favorable score and a more reliable borrower.
One effective way to manage outstanding debt may be applying for a debt consolidation loan and use the loan to pay off existing lines of credit. Take into consideration that although this may reduce the amount of current outstanding obligations, it may reduce your length of credit history…which could be negative.
Lizzy Bee’s offers financial analysis on many different levels. Click here if you’d like to schedule an appointment or get a quote!