8 Proven Strategies to Boost Your Credit Score Fast and Effectively

magine you walk into the bank, wanting to get a loan for your dream home, but the cashier announces the bad news. You don’t have a strong credit score to get a home loan.

It’s frustrating to be turned down for everything you’ve dreamt of.

This is why you need to focus on your credit score now. Start with these tips below and fix your credit score.

8 Proven Strategies to Boost Your Credit Score

Improving your credit score isn’t rocket science. Learn the basics of how credit scores work and you’re already halfway to boosting your credit score.

Not only will it help with your dream home or car but also reduce stress and give you more opportunities in life.

Here are the top 10 strategies to fix your credit score quickly:

1. Check Your Credit Report for Errors

The first step should always be to check for errors in your existing credit report.

It is way more common for an error to appear on a report than one can imagine.

Check for discrepancies on your credit report thoroughly.

If found, immediately file a dispute with the credit bureau. You might need to provide some documents to support your case but these are typically resolved within 30 days.

These errors drag down your credit score. Getting them removed will help fix it.

2. Keep your Credit Utilization Low

This is one of the most overlooked factors in keeping your credit score in check.

You should not use more than 30% of the credit available to you in a billing cycle.

High credit usage puts you at risk of default from the banks’ perspective.

Keep your credit utilization low and credit scores high.

3. Pay Bills on Time Every Month

Paying bills is as important as basic it sounds.

A late payer is a high risk consumer for the banks.

To pay your bills timely, you can set up automatic bill payments for your credit cards, & avoid late payment fees and low credit scores.

4. Avoid Closing Old Credit Accounts

Closing old credit accounts might sound vague but it does affect your credit score.

Older accounts show that you have long and stable relations with other credit lenders.

Unless the account has high fees or isn’t in good standing, keep them open.

5. Limit New Credit Applications

There are two types of inquiries credit lenders run when you apply for credit – hard and soft.

A soft inquiry does not affect your credit score but a hard inquiry does.

Try to limit new credit applications for big loans. Too many hard inquiries in a short period will reduce your credit score.

Be strategic with your applications.

6. Diversify Your Credit Mix

Your credit score benefits from having a mix of different credit types, such as credit cards (revolving credit) and loans (installment credit).

Having a mix of credit types can positively influence your score, accounting for 10% of it.

If you’ve only ever used one type, consider diversifying like opening a secured credit card. Just make sure you can manage the payments.

7. Clear Your Existing Debt

Focus on paying down high interest debt first while making minimum payments on other accounts. Aim to keep your credit utilization below 30%, and ideally under 10%, to see a positive impact.

High credit card balances can hurt your credit utilization ratio.

8. Monitor Your Credit Regularly

Stay informed of your credit score. It is one of the best ways to protect and improve your score.

Focus on score reductions and errors, if any and try to fix them promptly.

Not only will it keep your credit score in check but also help build you financial discipline.

How Long Does It Take to See Results?

Do not expect your credit score to boost overnight. Improving it takes time, depending on what actions you’ve taken and how consistent you are.

• Immediate Results (1-3 months): Some steps like eliminating errors have an immediate effect on your credit score. Similarly, paying down high interest debt will also have quick results.
• Short Term Improvement (3-6 months): Consistent positive habits like paying bills on time and keeping a low credit utilization ratio can gradually change your score.
• Long Term Gains (6 months+): Disasters like defaults or bankruptcies can easily take more than a year to fix your credit score. Keeping old stable accounts open and having a good credit mix can drastically improve your score.

Conclusion

You now know the basics of credit repair. These strategies will help you fix your credit score but only to a certain extent.

There’s way more to credit score optimization than what’s known to the public.

This is where you need to hire the experts. The lawyers who know how to play the game in your favor.

You can get a free consultation with credit repair attorneys and we will share how we can help you out.

Click here and get started with the 1-on-1 consultation now.

FAQs

How can I boost my credit score fast?

You can quickly improve your credit score by paying down high credit card balances to lower your credit utilization ratio and correcting errors on your credit report.

What habit lowers your credit score?

Defaulting on payments is one of the worst habits for your credit score.

What messes up your credit score?

Several actions can hurt your credit score, including late or missed payments, high credit utilization, defaulting on loans, and having multiple hard inquiries from frequent credit applications.

How to pay a credit card bill to increase credit score?

Pay your credit card bill on time and aim to pay the bill in full instead of just the minimum amount due to increase your credit score.

What is a bad credit score?

A bad credit score typically falls below 580 on the FICO scale. Scores in this range make it difficult to qualify for loans or credit cards with favorable terms, and lenders may view you as a high risk borrower.