The Quickest Way to Bring Up My Credit Score

People planning to apply for a new line of credit such as an auto loan or a mortgage may want to increase their credit scores before getting the loan. Lenders base interest rates for loans on an individual's credit score, a number between 300 and 850 that helps the lender assess how risky it is to lend money to that person. Bringing up your credit score qualifies you for lower interest rates because lenders see you as more likely to pay back your debts on time. The fastest way to raise your credit score is to eliminate negative information on your credit report.

Instructions

1

Obtain a copy of your credit report from each of the three major credit reporting agencies, TransUnion, Experian and Equifax. If you have not already obtained your free credit reports this year, get them through the Annual Credit Report website (see Resources) for free.

2

Read the credit reports and make sure all of the accounts listed belong to you. If you find any accounts you did not open, mail a letter to the credit report bureau that listed the faulty information on your report and ask that the account be removed from your report.

3

Check the listed credit limits for your revolving lines of credit such as credit cards and home equity loans. If any credit limit is shown to be lower than your actual credit limit, send a copy of your credit card account statement with the correct credit limit to the credit bureaus along with a letter asking them to fix the errors.

4

Contact collection agencies for any accounts listed in your credit report as in collection. Pay off the accounts in full and ask them to report to the credit bureaus that the accounts have been paid.

5

Write to any lenders for which a late payment appears on your credit report and ask for a "goodwill adjustment". If you are a longtime customer and have made all of your payments on time since the late payment, they may contact the credit bureaus and ask that the late payment be removed from your reports.

6

Pay off as much of your credit card balances as possible, especially if you are using over 30 percent of your available credit on a card. Much of your credit score is based on the ratios of debt to credit limits, so paying down balances can increase your credit score quickly.