Improve your credit score quickly

Are you looking to get a loan or a new credit card but having troubles qualifying because of a bad credit score? You are not alone. Thankfully, there are a lot of things you can do to help increase your score. By doing this you can improve your score, which will allow you to qualify for more loans and to pay lower interest rates for the loans you do get. None of the actions we are listing are miracle fixes, but they can help.

Before we look at solutions, let’s take a second to understand how to avoid the problem in the first place. There is a simple way to keep your credit score good in the first place – pay your bills on time, only get new credit when you need it and keep your balances low.

If it is too late for that, here is what you can do. To begin with pull your credit report to see what your score is. Make sure that everything that is reported on your report is accurate – that the accounts are actually yours, that the amounts are correct and that paid off debts are shown to be paid off. Quite often you can improve your score just by fixing any errors which appear.

Once you have done that, the next best action is to pay down your credit card balances. You can make a big difference in a fairly short time just by lowering your credit card balances.

Make sure that your bills do not go past 60 days due. It is at this point that most companies report to the credit bureaus. By paying on time you can avoid this. If you have lots of late payments in the past you can still improve your score by paying all your bills on time from now on.

credit scoreOne mistake people make is to close out unused credit accounts. This is a very bad idea. By closing out these accounts you are decreasing your total debt capacity, so you look like you are using more of your available credit. This looks bad. Once you have an account, keep it open. If you don’t want to use them anywhere, just put the cards away in a drawer.

If you have one card which is close to maxed out and another which is empty, transfer some of the balance from the full card to the empty one. Your score will be better if your balances are even and less than half of your available credit than they will be if you are maxed out on any accounts.

These tips will help you make your credit score look better for lenders.