How to Improve Your Credit Score Fast Even After Consolidating
A bad credit rating can seriously hinder your ability to obtain credit. Whenever you apply for a loan or a credit card, the lender will check your credit rating to assess your previous repayment history.
And if you’ve used debt consolidation or an alternative debt reduction program, your credit may have taken a hit. Rather than pay higher interest rates or risk another rejection on a credit application, it may be time to think about ways to improve your credit score fast.
Boosting your score back to respectable levels is a lot easier than you think. You just have to be willing to put in a little time. There are quite a few actions you can take to accomplish this compared to doing nothing at all.
And this article will show you five of the top methods at your disposal. You’ll learn the simple, yet effective strategies to get your credit going in the right direction as quickly as possible.
4 Tips to Increase Your Credit Score Fast
Of course, there are more than 4 options for increasing your score, these are the 4 we believe to be the best available to anyone. They are easy to understand and the implementation is straightforward. No complex or confusing tasks.
Here they are…
#1 Check for Mistakes
Most people don’t have an accurate idea of what’s listed on their credit report. It’s important you check your file to see if any incorrect information has been listed against your file.
Check that any debts listed on your file actually belong to you. It is possible for a credit reporting agency to enter information about someone with the same name as yours on your file instead of theirs. If you do find any discrepancies listed, contact the reporting agency in question and get them rectified at once.
#2 Catch Up on Overdue Payments
Late payments can play a big role in how your credit score is calculated. If you have some outstanding bills you haven’t paid yet or some repayments that are overdue, work on clearing those as quickly as you can.
If you don’t have the available cash to pay off those delinquent debts, call your creditors at once. Ask for a payment arrangement that suits your financial situation and allows you to catch up on those debts.
#3 Change Your Payment Frequency
Your credit score focuses on your level of financial responsibility and your diligence in paying back any money you owe to your creditors. However, your bills and repayments are often set so they’re due on a monthly basis.
Many people struggle to find a larger sum of money to pay a bill at the end of the month, which can lead them to being a few days late from time to time. Yet if you break down your repayment amounts into smaller amounts and pay them more regularly, you could benefit in a number of ways.
Instead of paying $200 per month, you could decide to pay $50 per week. The smaller amount is easier to budget for. The more regular repayment also makes it easier to stay on top of your repayments.
This is all part of how to improve your credit score quickly and efficiently.
Also, making weekly repayments off your debts helps to reduce your balances faster, as you end up paying less interest overall. Your creditors are also obliged to report that you’re making regular payments, all of which can help to improve your credit score overall.
#4 Consolidate and Close Unused Credit Accounts
When you submit a credit application to a lender, the assessor will view the number of credit agreements you have and check your conduct on each account. If you have any credit cards or other credit agreements you no longer use, you may want to consider closing them down.
However, if all your credit cards, store cards and other lines of credit are maxed out and can’t be closed down just yet, it may be time to think about consolidating some of your debts. Setting up a debt consolidation loan allows you to pay off some of those outstanding credit cards and get rid of them once and for all.
Once your accounts are repaid, close them and don’t apply for new credit facilities. Focus on making timely repayments on your remaining debts instead. You should find that your credit score starts to increase quickly.