Credit scores are meant to show the risk companies take when extending financing. They do not give you a grade on your character or personality, just how much risk you are taking. It is possible to dramatically improve your credit score in a matter of months with minimal effort and no debt, using these three strategies:
Consolidate all of your debt
Paying off more than one credit card per month will help you significantly improve your scores since this is how much the lenders are saying you are using overall, and any extra you are using on another card will not count to the score being calculated immediately. Do not have multiple cards with double or triple payments. Reducing the size of an account can usually help boost a score faster.
Open new credit accounts
This means you have fewer total card balances than the numbers listed on your report, but it will not help you right away. Take advantage of opening new credit accounts that can help boost scores and use the credit limit to make payments on all cards or pay down other loans.
Pay your bills on time
Even if you do not have a lot of room for more credit based on utilization, paying late will hurt your scores more than not having extra money in the account will help them. If you are late making payments, try to get it into the system as soon as possible and send in a payment plan request. You can do this through the same tools that sell credit management products.
When you have a good credit score, you can get approved for the home loan you want or the new vehicle that you have your eye on. You can even get approved for that high-speed Internet service that can help you run your business more effectively. If you are unsure how to improve your credit score, give us a call, and we will be happy to help.