We all do not love a bad credit record. This kind of a record makes it difficult for us to secure loans easily. There are few companies that want to lend people with bad credit record. We shall always have a credit record attached to us based on our ability to repay loans at the stipulated time. We shall always either have a good or a bad credit record. No one wants a bad credit record and this is the reason we need to work hard enough to do away with the bad credit record. Have you ever asked yourself if there is a way of raising your credit score quickly? Well, it is possible, and this is how you do it!
Here are 5 tips to raising your credit score:
1. Pay all your bills on time
This is one of the best ways to improve your creditworthiness in a short period of time. Utility companies are also credit providers and as such, they report bad credit and good credit. When you miss payments of your bills, you will definitely be negatively working to deteriorate your credit score. All your utility and other kinds of credit providers report your payment reports and for you to avoid bad credit, you have to adhere to their set payment deadlines.
2. Dispute any errors you uncover in your credit reports
It is possible for you to access your credit score and credit reports online. There are websites that can let you do this for free. When you discover that there are some companies that have reported erroneous reports on your accounts, you could report these errors and have them corrected. You can also follow up on the process of investigations and ensure that the corrections are done expeditiously.
3. Keep revolving debts low
It is important that you keep your credit card debts low. This is one of the things that a lender checks. They want to know your available credit as well as the credit limits you have used. These can be affected by your revolving debt. Keep it as low as possible.
4. Pay off a big amount of your remaining debts
It is also easy for your credit score to improve if you can make a one-off repayment of your credit or part of it. You may decide to look for an extra job to make some money for this purpose. If your credit cards owe quite a lot, it would be better if you worked to reduce these balances through some repayments.
However, before you start paying big amounts of debt all at once, you need to make sure that the loan you have taken out allows for you to make overpayments. For example, if you were to take out logbook loans on LoanOnYourCar, you can settle your loan at any time penalty-free, and overpayments are allowed. Always check these vital details when you take out a loan.
5. Request an increase in your credit limits
This is still another way you can improve your credit score fast. If you are a long-standing client and have a decent credit history, it would do you good to have your credit limits increased. Your credit card issuers can increase your limits so that your credit utilization ratio will be higher. If this does not work, it would be a good idea to open a new credit card.