In general, it takes time to build a positive credit profile. Your credit score is based on a number of factors, such as when and how you pay your bills, how much credit you use, and how often you apply for credit. Over time, you credit score can change based on your changing situation. When you are preparing to make a major financial decision and need your score higher in a hurry, these tips might help boost your score quickly.
Fix Errors
The credit industry is notorious for errors on personal credit accounts, and an invalid account or late payment on your credit report may be dragging down your credit score unnecessarily. Order a copy of your credit report from each of the three credit bureaus: TransUnion, Equifax and Experian. You are entitled to a free copy of your credit report from each of the bureaus once a year. Review your credit reports for falsely reported late fees, accounts that do not belong to you, or accounts that may still be showing as an unpaid delinquency even after you have settled them. Contact your creditor with proof of the inaccuracy, and request that the record be updated immediately. If the creditor is uncooperative, contact the credit bureaus directly, and demand a correction to your credit report. Corrections may be reflected in an increased score in as little as 30 days.
Verify Your Credit Limits
Your credit score is affected by the percentage of debt you owe in relation to the total available credit determined by your credit limits. You can improve your credit score by maintaining a debt ratio under 50 percent, or no more than $2,500 for an account with a $5,000 limit. In some cases, your lender may increase the credit limit on your account and fail to report the credit line increase to the credit reporting agency. This inconsistency can make it appear as though your debt to available credit ratio is higher than it actually is. To help increase your credit score quickly, contact your lender to request that they report the correct credit line to the credit bureaus.
Reorganize Your Debt
If you currently use one credit card that has a balance about 50 percent of the total credit line, consider reorganizing that debt. According to BankRate.com, diversifying your debt across two or three different cards with low balances can be more beneficial to your credit score than only having one credit card that is nearly maxed out. If you have the available funds, make a payment to decrease the debt level of your single account below 50 percent. If you do not have the cash available, transfer a portion of the balance to your other cards. Continue paying all accounts on time, and you could see a quick adjustment to your score from this simple action.
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