Ways to Improve Credit Score Quickly

Although the most tangible way to improve credit scores is to pay bills on time over a period of years, consumers can take several key steps to improve their credit scores quickly. It can be particularly useful to complete these steps over several months before applying for a car loan or mortgage.

Fix Incorrectly Reported Information

One of the quickest and easiest ways for consumers to improve their credit scores is to obtain a copy of their individual credit reports and correct any inaccurate information. An old medical or utility bill previously settled may still be reported as late or unpaid, a credit card may show an incorrect balance due, a previous mortgage payment may have been credited late because of a bank error, or a tax bill may have been disputed or incorrect. In all such cases, consumers should write to the creditor, who is obligated to either verify or remove the negative item at hand.

Bring All Accounts Current

If consumers habitually pay a credit card a few days late, this will have no bearing on their credit score, as negative information is reported only after a delinquency of 30 or more days. However, if they are typically a month or two behind, a proactive way to address this is to apply for a debt-consolidation loan or mortgage refinance, obtain a second job or borrow money from friends or family to become current on all bills. Within just a few months of bringing those accounts up to date, your credit scores will improve notably.

Pay Down as Much Debt as Possible

One of the primary factors in a high credit score is a low usage-to-available-credit ratio. If credit utilization is at or near the available credit on even one or two accounts, this presents a red flag to potential creditors as it suggests some sort of financial trouble. Paying those cards down by whatever means available will immediately improve your credit score.