Quick Credit Score Fix

Fixing a credit score quickly is useful when trying to qualify for a home loan or auto loan. A good score not only helps approvals, but the best rating gets you the lowest interest rate on financing. If you need to boost your credit score fast, you can follow several effective tips.

Lower Credit Utilization

Utilization refers to the balance on credit cards in relation to the actual credit limit. People who max out their credit cards or keep the balances close to the limit have a high utilization, and this can decrease credit scores. Paying off balances or at least bringing down the balance can quickly add points to a credit rating. MSN Money suggests keeping credit card balances below 30 percent of the credit limit. Stopping credit card use and paying higher minimums contribute to a lower balance.

Report Errors

Credit scores can dip due to conditions beyond your control. Someone can steal your personal identity and open credit cards in your name, or creditors can send erroneous updates to the three credit bureaus. Take a close look at your credit report and keep an open eye for errors such as unknown collection accounts, unknown credit accounts, liens, and past-due remarks. Report these errors to your creditors and ask them to update your report to quickly fix your credit score. Get your free report from Annual Credit Report (see Resources).

Use Credit Accounts

Credit scores can flat-line or stay the same if you don't use credit regularly. Using cash only and storing credit cards away are key to avoiding mounting credit card debt. But at the same time, failure to use credit may prompt creditors to report these accounts as inactive, wherein they stop updating your credit report. Occasionally take out an old credit card and use the card for a small purchase such as fueling your car, or use the card to pay bills and then pay off the balance at the end of the month. Creditors will report your good habits and credit scores will improve.

Rapid Re-scoring

Creditors and lenders update credit reports monthly. But if you need an immediate update to boost your credit score within a few days, talk to creditors about rapid re-scoring. This method is useful if you've recently paid off a credit card bill or detected serious errors on your credit report, and you want creditors to immediately update your report. Creditors charge a fee for rapid re-scoring -- about $50, as of 2011. Rapid re-scoring can improve your credit score within 72 hours.