A low credit score isn't earned overnight. Likewise, improving your credit score usually takes time as you re-establish your ability to use credit wisely. However, there are a few tricks that can help you to bring your score up without waiting years to see the results.
Credit Report
Before you can even begin to improve your credit score, you need to know why it is low. Checking your credit report can help you to understand what is negatively affecting your credit score, and may alert you to items on your report that are erroneously affecting your credit.
Check your credit report for negative items that may not be legitimate. MSN Money's Liz Pulliam Weston recommends disputing "late payments, charge-offs, collections or other negative items that aren't yours," along with items that should have been discharged as part of a bankruptcy, as these are negative items that can affect your credit score dramatically.
You can obtain one free copy of your credit report every twelve months from one of the three credit reporting bureaus -- Experian, Trans Union, and Equifax.
Use Credit Carefully
If you have several revolving credit lines, such as major credit cards or store credit cards, check your credit limit against your balance. The closer your balance is to the credit limit, the more negatively your credit score is affected.
Pay down as much on your balances as possible, and stop using credit cards in order to stop incurring more debt.
"Though it's not an instant cure, paying down credit lines over a two-month period can boost your score a substantial amount," says Bankrate's Pat Curry.
One caveat -- do not pay off all your cards in one fell swoop, or close several unused accounts. This can actually hurt your credit score by giving the appearance that your accounts have been closed by creditors.
Apply for Credit Wisely
If you are improving your credit score in hopes of getting a major loan or just a better interest rate, don't open any new credit accounts before applying. New credit can reduce your credit score further, even if you are only transferring balances.
"Applying for a new account can ding your scores," warns Pulliam Weston, who adds, "so, too, can transferring balances from a high-limit card to a lower-limit one or concentrating all or most of your credit-card balances onto a single card. In general, it's better to have smaller balances on a few cards than a big balance on one."
Pay Your Bills on Time
"The mantra for getting a great score is pay your bills on time, keep account balances low, and take out new credit only when you need it," Craig Watts, consumer affairs manager for Fair Isaac Corp., the credit scoring organization, reports to Bankrate.
While paying your bills on time may not seem like a quick credit-score fix, it is ultimately the one that makes the most impact. Paying bills on time, even for six months, will help negate the effects of late payments in years past.
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