While it is not really possible to instantly increase your credit score, it is indeed possible to do so in a week’s time. The first step to increase credit score quickly is to chalk up a short-term action plan. Foremost, one should obtain his credit scores from the three bureaus and scan them for inconsistencies such as paid debts still reflecting in the report. Contesting inconsistencies in a credit report and asking for proof of bad accounts often results in the bad accounts being dropped from the report. This is because the onus of proving the veracity of an entry in the credit report is with the credit bureau and often the bureaus may not have adequate proof for a given entry in a credit report.
By going through one’s report it is possible to learn about the impediments to a good score and work toward improving them. Contributors to a poor score could include excessive unpaid bills and impending bankruptcy. The factors that are hampering one’s credit score should be tackled first, at the same time one should also be aware of the major contributing factors toward the credit score and work to maintain those.
By paying off debts as fast as possible, one can shave off negative marks off the credit report. Accounts that have been maintained for a long time should not be closed once debts have been paid as accounts held for longer durations have a positive effect on the credit score. Closing off unused credit accounts lowers an individual’s total debt capacity. One should try and obtain a varied credit mix that shows an individual’s capabilities to manage different financial responsibilities.
While paying off debts, one should ideally pay off the oldest ones first; this is because most lenders do not report to the credit bureaus till the payment is more than 60 days past the due date./p>
The co-signer technique is a good way to add to one’s credit points quickly. An individual can add his name to a family member’s credit card if the card holder has a good credit history and reap the benefits of that person’s credit history.
Consolidating debt and taking a low-interest loan such as a fixed rate home loan are a good way to gain credit points. Homeowners are better placed for acquiring a low-rate debt that can be used for paying off other debts and in the process raising credit score.
Even though most of the activities for raising a credit score can be achieved by an individual on his own without having to resort to the services of a professional agency, it is a good idea to obtain credit counseling. Credit counselors offer advice and useful perspective that helps in charting a plan for raising the credit score. This is particularly pertinent for those who have a credit score of less than 620 and can only avail the services of lenders who charge a high rate on interest.
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