3 Ways to Improve Your Credit Score Fast
What you can do easily! You need to first get a copy of all your open accounts organized in a stack.
Then, if you don't have a copy of your current credit report, you should also collect as many of your old or closed accounts as possible.
Put everything in order from highest balance to lowest.
Get out your calculator and start making a list.
If you use a computer you might want to start some kind of spread sheet to work with.
Starting with the highest balance, calculate how much you own compared to how much you can actually borrow.
Then add up again but, this time, include the recently closed accounts to find out how much total credit you have had.
First Tip: Make sure none of your balances are more than 50% of what your credit limit is.
By paying the balance down to under the 50% your score can go up by more than 20 to 30 points.
Lenders will look more favorably on you when you are not appearing to be over extended.
Second Tip: Don't close accounts you have not used in a while - that can actually lower your score! The total balances of all your accounts compared to all your credit limits is also calculated in your score and can be part of up to 15% of your score.
Leave them alone! There is a lot of misinformation out there and this is one of the myths that comes up all the time.
Don't listen to anyone who suggests this.
The same goes for paying off an account, it won't increase your score and could hurt you more than help you.
Lower the balance as above to under 50% of your approved limit.
Third Tip: If you usually run a high balance but pay in full monthly, that could be hurting you! - Try paying part of the balance down before the end of the 30 day reporting period.
Many people don't understand that even though they pay an account in full every month that may actually be hurting their credit score.
The score is calculated on the balance at the close of the month's reporting, usually several days before the actual month end.
Either change when you pay the account off each month or make an attempt to pay part of what you will owe before the close of reporting for the month.
Check on each accounts reporting period on the last several statements you received from that creditor to see when they close their accounting for that month.
Then, if you don't have a copy of your current credit report, you should also collect as many of your old or closed accounts as possible.
Put everything in order from highest balance to lowest.
Get out your calculator and start making a list.
If you use a computer you might want to start some kind of spread sheet to work with.
Starting with the highest balance, calculate how much you own compared to how much you can actually borrow.
Then add up again but, this time, include the recently closed accounts to find out how much total credit you have had.
First Tip: Make sure none of your balances are more than 50% of what your credit limit is.
By paying the balance down to under the 50% your score can go up by more than 20 to 30 points.
Lenders will look more favorably on you when you are not appearing to be over extended.
Second Tip: Don't close accounts you have not used in a while - that can actually lower your score! The total balances of all your accounts compared to all your credit limits is also calculated in your score and can be part of up to 15% of your score.
Leave them alone! There is a lot of misinformation out there and this is one of the myths that comes up all the time.
Don't listen to anyone who suggests this.
The same goes for paying off an account, it won't increase your score and could hurt you more than help you.
Lower the balance as above to under 50% of your approved limit.
Third Tip: If you usually run a high balance but pay in full monthly, that could be hurting you! - Try paying part of the balance down before the end of the 30 day reporting period.
Many people don't understand that even though they pay an account in full every month that may actually be hurting their credit score.
The score is calculated on the balance at the close of the month's reporting, usually several days before the actual month end.
Either change when you pay the account off each month or make an attempt to pay part of what you will owe before the close of reporting for the month.
Check on each accounts reporting period on the last several statements you received from that creditor to see when they close their accounting for that month.
