How to Quickly Improve Your Credit Scores
Category: Credit
17 0 0 2
Spontaneously increasing your credit score may be
necessary given a variety of situations. For example an individual may be
seeking to purchase a car, home or even seek a personal loan. When this occurs
what you need is a quick way to improve your credit. If possible you want to
begin the repair process at least three months before you start any application
process.
Here are a few ways you can use to quickly improve a low score:
Pay down credit cards and lines of credit- When a customer takes a revolving credit, the credit scoring system would compare your credit limit with the total amount of credit you're allowed to access. The higher you are to the limit the more you are seen to depend on your credit and hence your score gets reduced; you take the hit.
To resolve this you should pay down all your balances to below 30% of the total credit available to you,
Another option is to take a loan against your 401K due to the fact that this type of loan does not show up on your credit report. But do ensure that all the trouble to use this resource is worth it.
Correct Errors on your report- An estimated 70% of credit reports have some sort of error existing in them, due to this high error rate it is worth every effort to ensure that no errors exist in your report. Entries such as other peoples bankruptcies, collection accounts or charge offs if found in your report could hold down a good credit rating. Ensure that every wrong account is deleted promptly.
Updating reports with all three bureaus- Despite the existence of hundreds of credit bureaus, your focus should be placed on ensuring that the three most important (Equifax, Transunion and Experian) bureaus all have detailed information on your credit report. You have to ensure that all three reports are dispute free.
Here are a few ways you can use to quickly improve a low score:
Pay down credit cards and lines of credit- When a customer takes a revolving credit, the credit scoring system would compare your credit limit with the total amount of credit you're allowed to access. The higher you are to the limit the more you are seen to depend on your credit and hence your score gets reduced; you take the hit.
To resolve this you should pay down all your balances to below 30% of the total credit available to you,
Another option is to take a loan against your 401K due to the fact that this type of loan does not show up on your credit report. But do ensure that all the trouble to use this resource is worth it.
Correct Errors on your report- An estimated 70% of credit reports have some sort of error existing in them, due to this high error rate it is worth every effort to ensure that no errors exist in your report. Entries such as other peoples bankruptcies, collection accounts or charge offs if found in your report could hold down a good credit rating. Ensure that every wrong account is deleted promptly.
Updating reports with all three bureaus- Despite the existence of hundreds of credit bureaus, your focus should be placed on ensuring that the three most important (Equifax, Transunion and Experian) bureaus all have detailed information on your credit report. You have to ensure that all three reports are dispute free.
Further reading
How to Use Presentation Slides to Best Effect
No comments:
Post a Comment