How Do You Increase Your Credit Score Instantly?
As we all know, having a bad credit score greatly affects your life. You are getting denied by lenders and creditors, being rejected by landlords for apartment or house rentals, and not getting the job of your dreams.
So here are some tips on how to increase your credit score instantly.
Tip #1: Paying down your balances
30% of your credit score is composed of your revolving accounts— credit cards and charge accounts. This is where credit utilization comes in. It is ideal that your credit utilization is 30% of your credit limit, but of course, it will be better if it’s lower than 30%.
For example, if you have five credit cards and the total credit limit is $10,000 and you have $5,000 total balance, your credit utilization is 50%. So, paying it down to $3,000 will have a credit utilization of 30%. If you can pay it down even more, then the better. With this, this can help boost your credit score.
Tip #2: Increasing your credit limit
Tip #1 may not be for everyone. So, increasing your credit limit is another way to go. Having this will help decrease your credit utilization. But for this technique to work, you should keep your balances stable.
For example, your current credit limit $500 and your total balance is $250, so your credit utilization is currently 50%. If you increase your credit limit to $1,000, your new credit utilization will be 25%. So, this another way for you to boost your credit score.
Tip #3: Paying more often
If in any case, you always max out your credit utilization, it wouldn’t be ideal for you to pay it once a month since lenders report to the credit bureaus once a month and may not reflect your actual behavior. Moreover, maxing out always and paying it once a month and with the frequency of data sharing, this may look like credit overuse. So, it would be better to at least pay twice a month to have a lower running balance.
Having errors and inaccuracies on your credit report has a big impact on your credit score. This is where credit repair comes in. You assess and determine all errors on your credit report and dispute it to the credit bureaus.
If you may not know this, disputing errors on your credit report is a long process and takes a lot of knowledge and time. So, a better option for this is to look for a credit repair company to do the job for you.
So, the tips mentioned above are great ways for you to increase your credit scores while waiting for the results of your disputes. And these tips are not only a one-time process, rather they are things that you must do regularly.
Having errors on your credit report is one thing but having a bad habit on your finances is another thing. So, it is best that you practice a good habit when it comes to your finances.