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If you're looking to buy a house or buy a car with bad credit, you're probably interested in finding a way to improve your credit score quickly. The four tactics listed below are the ones that are proven to be effective at increasing your credit score fast.
Remove Inaccuracies From Your Credit Report
It has been estimated that 79 percent of people in the United States have at least one serious inaccuracy on their credit report. Chances are you have something that's not factual on your report, and it could be bringing your credit score down.
A lot of people with bad credit think that there's no point in disputing an inaccuracy since they have other negative factors on their report. Nothing could be further from the truth. At the lower end of the credit scale, a few points difference could result in an interest rate change of as much as a full point. Moving from one credit "bracket" (a grouping of scores) into another can make a huge difference.
Resolve negative open items
If you have legitimate negative items in your credit report that are outstanding, it helps to clear those up (or at least to start making payments). Lenders want to see that you are making an effort to pay off existing debt, and any open negative items that haven't been addressed will seriously hurt your score. Even a small payment toward an outstanding debt can make a big difference.
Restructure your debt
One important factor for calculating your credit score is the percentage of credit available. Generally, you want to keep each of your accounts under 50% of their total limit. If you have a credit card with a $500 limit that has a $400 balance on it, and another credit card with a $4,000 limit that has a $1,000 balance on it, you would be better served to move some (or all) of the $400 debt to the card with the higher limit.
It might feel like a three card monte routine, but it can help to boost your score a bit, so it's worth it.
Ask for higher credit limits
Along the same lines as the last point, if you find that your usage percentage is too high, you can reduce that percentage by increasing your credit limit. The worst time to ask for a limit increase is when you're nearly maxed out, but if you're able to get the increase, you'll improve your score.
If you follow these four tips, you should be able to see a decent increase in your credit score quickly. Of course, the best way to improve your credit score is to make regular payments and reduce your total debt, but that's more of a long-term plan.
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