Oh, the credit score. It seems no matter what you do these days, your credit score is part of it. Getting your financial life on track can be tedious and exhausting, especially if you have challenges holding you back. Getting a credit score to reflect the quality work you’ve done to put your finances right can feel impossible. Fortunately, you can learn how to boost credit fast to put yourself in a position where your credit score can work with you instead of against you. The quick boost is incredibly valuable when you know you have an important loan application coming in your future.
Fair warning: you need to be mindful of how you use some of these strategies. Although they could improve your credit score quickly, they could also set you up for financial struggle in the long term if you haven’t adopted good financial practices and habits in your own life.
How to boost credit fast: Strategies to improve your credit score
Some of these strategies may be more available to you than others, but they will work. The focus is to improve the highest impact portions of your credit score. Those items that impact your credit score most include:
- Credit use
- Payment history
- Derogatory remarks
Do you need to know how to boost credit fast? If you can improve the status of any one of these items on your credit report, you have a likelihood of creating a large jump in your credit score to help you with any loan applicationsyou have soon.
- Increase your credit limit– As long as you maintain the same amount of debt, an increase in your credit limit will improve your credit score. Your credit use is rated by the percentage of the available credit you are currently using. If you don’t have the means to pay off all of a debt, increasing your limit is another way to decrease your credit use.
- Be added as an authorized user– Being added as an authorized user on another person’s card can also reflect well on your credit use. Just make sure you’re not being added to a card that is nearly maxed out.
- Make your payments on time– In looking at how to boost credit fast, this is not a quick solution. It is, however, essential. If you haven’t been making all of your payments on time, there is nothing you can do to repair that damage except to start making all of your payments on schedule.
- Dispute any errors on your report– Mistakes on your report happen more often than you think. You can dispute credit remarks directly with each credit bureau or contact a credit repair agency to do the work for you. Even if the error seems small, having just one derogatory remark has a significant impact.
- Reduce your debt to income ratio– This doesn’t exactly impact your credit score, but it has a huge impact on your approval for a large loan. Credit bureaus don’t look at your income, but lenders will. Your credit score is only one factor they consider. Even an excellent credit score won’t mean much if you have too much debt relative to your income.
- Negotiate if you are in collections– If you have a debt in collections on your report, it will hinder your ability to increase your score. The best thing you can do is to pay off this debt as quickly as possible. Collection offices usually have the authority to negotiate debts lower in order to receive payments. You might be able to cut the payment in half or more to get the debt removed from your report. This will have a substantial positive impact on your credit score.
Lastly, if you can avoid it, don’t cancel your accounts. When you close an account, your credit score will go down. One of the most critical factors in how to boost your credit fast is actually using credit. It’s a game that you’ll lose if you aren’t playing. So, if you have a large debt that you can pay off, the best thing to do will be to get it low, but not close the account. This will lower the amount of your debt while maintaining a valuable account in good standing credit.
A good credit score doesn’t mean you have no debt. It means that you are a reliable debtor. The only way you’ll win the trust of a large lender is if your score reflects reliability first.
Do you feel more confident about how to boost credit fast?