Is your credit score lower than you would like? There are some ways available to boost your credit score fast. This comes in handy if you need to purchase a car or other important item with credit and you want your interest rate to be as low as possible. While these methods will not erase any negative information that is on your credit report, it can provide a quick boost to your credit score and help you save some money in interest payments.
Pay Down Any Outstanding Credit Balances
Your credit score is affected by the amount of outstanding debt you are carrying. By paying down these balances, you skew the credit score calculation in your favor. If you are thinking of making a major purchase with credit in the near future, such as getting a mortgage or a vehicle loan, pay down your outstanding credit balances as far as you can and refrain from using credit until after you have secured the purchase you needed to make. You will find that the lower interest rates offered will save you hundreds over the life of the new loan.
Ask For Credit Limit Increases
Another way to increase your credit score quickly is to ask your credit card issuers to increase your credit limit. A large part of your credit score calculation is the amount of credit you are using versus the amount of credit that you have available to you. By increasing the amount of credit you have while leaving the amount of credit that you have available the same, you will change the ratio, leading to a credit score increase. Many creditors will be happy to grant the increase as long as you have a good payment history with them and have held their credit card for a significant amount of time.
Fix Errors On Your Credit Report
Errors on your credit report can quickly decrease your credit score by a considerable amount. Experts have estimated that nearly one-quarter of all credit reports have errors on them that can dramatically impact the individual’s credit score. By reviewing your credit report and fixing these errors, you can bring your credit score back up to where it should be. Each consumer is entitled to a free copy of their credit report annually from each of the three major credit monitoring bureaus under federal law, allowing you to review your credit reports without having to pay any money to do so.