The FICO score came into existence in the year 1989 and soon majority of the banks and lenders started resorting to the same. Gradually, credit report became an instrument to determine the trustworthiness of an individual. In the present time, not only the banks and lenders but also insurance companies and employment agencies consider credit score as an important deciding factor.
Hence, it’s indispensable to maintain a good credit score for every individual. In case, you have a very low credit score, you should consult the best credit repair agency to improve the same. Nonetheless, here are some of the smartest ways you should try to accelerate your credit score quickly.
- Analyze Your Credit Report
First and foremost thing you should do is to study your credit report properly. Though it doesn’t show your score, you’ll be able to verify the negative items of the report erroneously written. Bureaus provide one free copy of the report on demand. The only thing you need to do is to ask for the same. You can also resort to the websites that provide free examining of credit score.
Once you have figured out the errors in the report, you can file applications to the bureaus for the dispute process. Apart from the errors in the report, there are cases when you may not relate to even a single item of credit report which can be a case of identity theft. Make sure to report the same to the bureaus at the earliest.
- Unnecessary Delays from the Third Party
There can be cases when there is no delay from your side but your report shows negative items due to delay of a third party. For instance, the collection account in your report may show a delay of payment that you are supposed to collect from the insurance company.
Under such circumstances, you need to file the dispute for the concerned item to the bureaus. Unlike early days, you don’t need to write the letters to them. You can simply file for the dispute resolution online.
Furthermore, there are cases where even if you have paid for your mortgage, the authorities fail to update the same that shows the negative item in your report. You can also file the dispute for the same to the bureaus.
- A Little Bargain Can Give Great Results
Your late payment has surely deteriorated your score badly. It’s time to repair it with utmost efforts. Once you have removed the errors with bureaus, try to negotiate with your creditors. They can help you remove such items and boost your score. However, you need to be polite enough to convince them for the same. Ordinarily, the creditors help customers removing the negative items who are with them for years. This way you can easily remove the genuine negative items free of cost from your report.
- Increase the Credit Limit
The ratio of utilization of credit and the available credit limit has a huge impact on your credit score. The more you utilize the credit limit the lower will be your score. For example, when the limit is $5000 and utilization is of $3000, it will reflect 60% of utilization of credit which in turn represents that the income does not suffice your needs.
You can opt for the option of lesser utilization of credit which at times becomes difficult. Rather, increase the credit limit let’s say to $7000 for the earlier example. By this means, you can maintain a gap between the utilization of credit and its limit.
- Get a New Credit Card
You must have heard that having too many loans and credit cards would hamper your credit score. However, if you deal with it tactfully, it can help you boost your score. Don’t use too many credit cards rather get a credit card that would increase your credit limit.
Using the above tips, you’ll be able to boost your score quite rapidly. Nonetheless, it is advised to contact the best credit repair service to improve your score when you want to apply for mortgage or loan.