Your Best 2021 Guide on How to Increase Credit Score Quickly

Your Best 2021 Guide on How to Increase Credit Score Quickly

The most important thing you have to take note of is that you ensure you get rid of debt as soon as you can and make sure that all payments for bills are made on time and regularly do so without missing a beat.

how to improve credit score quickly

Everyone knows how important credit scores are.

They can affect what you can purchase or the loans that you can get.

It can influence the rates that you can get for loans or credit.

It can even affect the premiums you pay for house or car payments or even for insurance.

A good credit score can open up opportunities for you while a bad credit score may affect the prices and availability of goods and services.

Today, we’ll take a look at what a credit score is and how to increase credit score quickly. 

What Is a Credit Score?

A credit score is a three-digit number that gives a numerical grade to how reliable you are as a borrower.

It lets lenders know your ability to pay back loans and debt on time or if they would even get their money back.

It’s a risk assessment tool for lenders and is one of the most important factors of your financial life and stability.

As mentioned, the higher your credit scores, the more likely you can get a loan or credit card and get it with the best payment terms with low interest rates.

This can actually end up with you saving additional money. 

Now, if you find that your credit score is quite low or not where you want to be, you don’t have to worry because you’re not alone.

If you know the tips and tricks, you can easily increase your credit score quickly.

One thing you have to remember is that you need to look at what is dragging them down and address them as soon as possible and you will see your credit go up.

There are several steps that you can take that will establish a record of you making payments on time, decreasing debt, and using tools like Experian Boost that allows a user to add utility and cell phone bills to a credit file. 

These steps will help how to increase credit score quickly and easily.

How to Increase Credit Score Quickly and How They Are Calculated

how to improve credit score quickly

Credit scores are usually calculated using a mathematical algorithm and are sent found in one of three consumer credit bureaus to generate the score.

The most common model for credit score uses the FICO score and has a range from 300 to 850.

If your score is closer to 300, this means you don’t have a good credit report but scores closer to 850 tell lenders that you are one of the most reliable payers available and so the risk is low to lend money to you.

Regardless of the number of credit scores available, one thing stays the same, what affects the score to go up or make it go down are always the same.

Knowing this will help on how to increase credit score quickly for you and open up financial opportunities. 

Most models for credit scoring often take into account your payment history for loans, debts, and credit cards, how much your revolving credit gets used, how long your accounts have been running, the type of accounts you have, and even how often you apply for a new credit card.

All these come together to determine what your score will be.

What should you do then to increase your credit score quickly? Read on, and we’ll set you up.

Check Your Current Credit Score

The first thing you need to do with how to increase your credit score quickly is by actually checking what your scores are.

You can start by checking it online which is information readily available.

These online reports will also showcase to you the factors that are affecting your score the most, so you will be able to see what is bringing it up or dragging it down.

By knowing these factors, you can have a better understanding of what you need to do to help improve your scores.

Remember though that changes to your credit score are not instantaneous.

If you do make changes to your credit history, it won’t reflect right away. 

Among the many factors that affect credit score, payment history and credit utilization ratios are considered among the most important in many critical credit scoring models.

They can make up to 70% of your total credit score. 

Let’s take a look at some tips how to increase credit score quickly as soon as possible. 

Pay Your Bills on Time as Regularly as Possible

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One of the most important things you need to do is to ensure that your bills are paid regularly and on time.

This is because every time payments are delayed, this gets reported and lets the credit reporting bureaus know that you aren’t a reliable payer.

Get Credit on Making Regular Payments for Utility and Cell Phone Payments

Generally speaking, utility bills like electricity and gas, and cellphone bills are not included when calculating credit scores.

If you want to get credit on your credit history for making payments on them, you may want to use a brand new tool called Experian Boost.

By going to experian.com/boost and registering, you will be able to link bank accounts to identify payments made on utility and cell phone bills, guaranteeing that your scores will be dragged up. 

Get Rid of Debt or Any Balance on Credit Cards and Other Loan Payment Facilities

Anyone can tell you that debt can be the worst thing on your credit score especially if they are unpaid.

Make every opportunity to get rid of any debt that you may have in your name.

Come up with a payment plan with your lender and get it squared off right away.

The same goes for credit cards too. This will lead on how to increase credit score quickly.

Apply for New Credit Cards Only as Needed but Do Not Close Unused Cards

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Applying for new credit cards to get a better mix of your credit and will really not make a difference in your credit score.

Applying for cards can hit your credit score if you get too many inquiries and may even tempt you to spend even more than you should.

However, if you do have additional cards that you are not using, don’t close those accounts.

Just make sure that you are not incurring any charges on them like annual fees or interests.

Your credit ratio (which is the amount of debt vs the number of facilities that allow for debt like credit cards) may be affected if you close an unused credit card and may cause your scores to go up.

Keeping unused credit cards that are debt-free will signal to credit reporting that you are ensuring your capability to pay when needed.

Don’t Apply for Too Much New Credit

Every time you request new loans, new credit cards, increase in credit or loan limits, your credit score can be checked.

And every time your credit score is checked, it can go down.

This means the more checks, the more times that the score can go down.

As mentioned, apply for credit or loan as needed, but don’t open accounts just for the sake of having options.

This may not help your credit and borrowing capacity at all.

Inaccuracies on Your Credit Reports Should Be Disputed Immediately

You should regularly read up your credit score reports to see what you are being reported on.

There may be times you might find items that are not actually yours that is being reported under your name.

Dispute these charges right away, so that an adjustment of your score can be made.

This ensures that no fraudulent transactions appear under your name that you are not aware of.

how to improve credit score quickly

Final Thoughts

How to increase credit score quickly is easily done if you follow the steps mentioned.

The most important thing you have to take note of is that you ensure you get rid of debt as soon as you can and make sure that all payments for bills are made on time and regularly do so without missing a beat.

If you do so, before you know it, you will have a great credit score giving you opportunities and greater financial freedom. 

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Author: John Benares

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