Improving your finances takes time, there’s no way around it. However, if you’re just looking for a way to boost your credit score fast, there are some tricks you can use to make sure your credit looks its best even when you’re still far from the financial future you envision.
Focus On Revolving Balances
Credit card debt can make up as much as 30% of your credit score, which means it can impact your score most. That’s why it’s good to pay down these types of debt as fast as possible. A good trick to remember to avoid problems in the first place though is simply to try to never let your debt surpass 30% of your limit. For instance, if you have a credit card with an even $1,000 limit, you should never have more than $300 on it at a time. Paying and keeping down your revolving balances can significantly improve your scores, in most cases in as little as 30 days.
Remove Late Payments
In case you didn’t know, your credit score represents everything you do financially, which means anytime you miss a due date or make a late payment, your credit catches it and lowers your score significantly. However, in some cases, you can try and negotiate to have a late payment removed or dispute it for inaccuracy. It won’t be easy, but it is possible, and it can improve your score exponentially seemingly overnight!
Eliminating Collection Accounts
If you have a collection account, this is usually a major red flag to lenders, but the good news is you can try and have it deleted. If you choose to do this just remember though, simply paying off the collection will not improve your score, it must be actually deleted by negotiating directly with the collector – just make sure you get all agreements in writing to protect yourself.
Up Your Credit
It may seem silly to tell you to increase your credit to up your score, but remember above about revolving debts? If you truly cannot find a way to pay down your debts, using a soft inquiry to increase your credit limit is a good way to instantly reduce your “revolving balance ratio” to below than 30% and essentially trick your credit score into believing you have less debt that you actually do; increasing your score.
Use Your Credit Responsibly
While it might seem easier to just get a credit card and never use it, this is not good for your credit. Lenders want to see you using your credit, that way they know you’re conscientious when it comes time to pay off your debts. So, try and at least make small purchases or payments on your card(s) here and there as often as you can. You can pay them off again right away; it’s merely about proving that you know how to use your cards responsibly.
Have Credit In The First Place
In the world of finances, no credit equals bad credit every time – so if you don’t have any credit, you should probably get some fast and remember to use it. In fact, the length of time you’ve had your credit can even impact your credit score so the sooner the better! If you’re struggling to find a creditor, try a secured credit card, becoming a co-signer, or other creative avenues to prove yourself financially responsible.
The most important thing to remember is not to give up. With a little hard work, you can definitely improve your credit score in as little as 30 days! Just know, whether you do or not, our incredible auto loans and resources at Suburban Auto Finance will always be here for you. Apply Now to get your preapproval so you can start car shopping our available inventory right away!