How to Quickly Improve Your Credit Score

Several factors play a role in bad credit. For instance, you may lose your job or experience other financial hardships, like health care bills, that make it difficult for you to keep up with payments. But fortunately, bad credit is fixable; and there are tricks to quickly improve a low score and receive the best rates on mortgages, auto loans and credit cards. Rather than accept bad credit as a way of life, take steps to improve your situation.

Instructions

1

Apply for a new line of credit. If a recent bankruptcy or foreclosure contributes to a low credit score, open a new line of credit to re-establish your credit history and quickly add points to your score. Contact your bank and inquire about a secured credit card.

2

Become a joint account holder. Ask your spouse, parent or a sibling to add your name to one of their credit accounts. You'll become a joint account holder and this credit account will appear on your credit report. To benefit from this arrangement, choose someone with a good credit history.

3

Reduce your debts. Paying off your credit accounts is another way to quickly add points to your FICO score. Use a lump sum of cash from a tax return or bonus to eliminate debt, or establish a debt elimination plan. Double or triple your monthly payments or ask a relative for a zero- or low-interest loan.

4

Pay your bills on time. To maintain a decent credit rating, pay your creditors on time. Missing or sending one late payment results in additional fees, and the creditor may increase your interest rate.

5

Dispute credit report errors. Errors on your credit report can lower your credit rating. Order your credit report at least once a year and check the report for errors and signs of identity theft. Report wrong information to the credit bureaus.