The Best Ways To Go About Fixing Credit Scores
June 14, 2022 | June Mckaig
Fixing credit scores takes time. But there are a few things you can do to actively make a difference in a relatively short period. From paying your bills on time to disputing credit errors to keeping old credit card accounts open, learning these tips and tricks can massively improve your financial climate.
You'll find the top five ways to go about fixing credit scores in the rest of this article.
Top 5 Ways To Go About Fixing Your Credit Score
1. Pay Off Outstanding Credit Strategically
While paying off outstanding debt will help your score regardless of how you do it, implementing some basic strategies will significantly improve your FICO score quickly.
The part of your credit limit in use is known as your credit utilization. Ideally, you should use less than 30% of your credit card limit at any one time (i.e., the lower, the better). Typically, those with near-perfect credit scores use less than 7% at a time.
You should ensure your balance is low when your credit card provider reports to the bureaus. Why? Because they use that to calculate your score.
To do this, simply pay down the balance before your current billing cycle ends. Alternatively, pay several times throughout the month to keep the outstanding balance as low as possible.
Fixing credit scores by paying off credit card balances is one of the best methods because credit utilization is the second-biggest influential factor.
2. Always Pay Your Bills On Time
No matter what strategy you implement, it'll be worthless if you don't pay your bills on time. Not to mention that late payments may remain on your reports for a whopping 7 ½ years!
Missing a utility or rent payment by 30 days or more has an extremely negative effect. If you fall into this horrible situation, call your creditor immediately and pay as soon as possible. Each month an account is marked delinquent, your credit score declines.
Your financial responsibility (i.e., paying bills on time) is the biggest scoring factor in VantageScore and FICO credit-scoring systems.
3. Make Sure You Dispute Credit Errors Promptly
Mistakes on your credit report considerably reduce your score. Therefore, disputing them gives your score a boost almost immediately.
You are entitled to view free reports from the top three credit bureaus. So, request them and check for mistakes. The most common errors are as follows:
- Payments marked late even though they were paid on time
- Somebody else's credit activity has been mixed with yours
- Negative information (i.e., data that's too old) remains
4. Keep Old Credit Card Accounts Open
Many people are tempted to close their old credit cards once they've paid them off. But don't fall into this trap! Keeping them open allows you to establish a long credit history, which makes up 15% of your overall score.
However, there are a few caveats to be aware of here. Some credit card issuers may immediately close your card after a certain inactive period. Plus, if you have to pay an annual fee to keep it open, it's probably best to close the account.
5. Get Emergency Cash
Financial emergencies can drastically impact your credit score, especially when paying for an unexpected event causes you to miss bill payments.
But luckily, you can get installment loans to lessen this burden! Even better, it doesn't affect your credit and is not reported to the credit bureaus.
Here at Nevada Title and Payday Loans, Inc., you can borrow up to $1,500 in as little as 24 hours by providing valid state-issued identification, proof of income, and a blank check.
We've outlined the process below, which takes a mere half an hour:
- Complete the online signature installment loan form. It sends your information straight to your local Nevada Title and Payday Loans, Inc. store.
- When the branch receives your request, one of our friendly loan experts calls you to tell you about the process, answer your questions, and determine that you have the required items.
- After the phone call, bring your photographic ID, proof of income, and a blank check from your active checking account to your nearest Nevada Title and Payday Loans, Inc. storefront.
- Sit with one of our loan associates. They will examine your documents to determine whether you qualify.
- If you do gain approval, the representative will guide you through the last steps of the approval process, which involves some simple paperwork.
- Finally, you receive the money you need on the same or the following bank business day.
Submit Your Installment Loan Inquiry Today!
You may well be surprised by how easy fixing credit scores is after following our top five tips and tricks. Plus, with our installment loans, you never need to let the prospect of late bill payments dampen your spirits. Just complete the online form to start the process. Our representatives are always happy to help.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.