If you’re looking for a quick and easy credit score improvement, there are 4 time-proven ways to do so. A couple of these are easier to do than the others, but all of them merit consideration.
#1. Authorized User
If you have a good friend or close relative with excellent credit, talk to them about allowing you to become an authorized user on one of their accounts. This is especially effective if their account is one that they’ve had for a long time. This can help you increase the average age of your accounts, plus the total credit available. In turn, you could see a substantial credit score improvement in just a matter of weeks.
#2. Credit Line Increase
Receiving a credit line increase is the quickest way to reduce your utilization, which is one of the two major factors in your credit score. If you have multiple credit cards, you could ask each of your creditors to consider increasing your limit. Be aware, though, that some creditors will pull a hard inquiry on your report, which can actually hurt your credit. Look for the creditors who will do a soft pull, as this will not impact your score.
#3. Reduce Utilization
If you are able, paying down the balances on your cards is the quickest way to see an uptick in your score. Creditors LOVE to see balances below 30% of the credit limit. Getting below 10% is even better. Both #2 and #3 are related, in that the goal is to lower your overall credit usage as it relates to your total available credit.
#4. Rapid Re-scoring
Rapid re-scoring is not widely known, but if you’re applying for a mortgage it could save you thousands of dollars. Simply put, if you’ve recently paid off a debt, or are able to prove that a negative item on your report is in error, you should approach your lender about doing a rapid re-scoring. This is especially useful if a slight improvement in your credit score will result in a better interest rate.
Utilization is the Key to Credit Score Improvement
These 4 ways to get a quick boost to your credit score all have one thing in common. They look to reduce how much money you owe in comparison to how much credit you have. As stated above, creditors want to see consumers below 30%, and preferably below 10%. Most importantly, once you are able to get there make sure you STAY there! ♦