In general, having a good credit record is an important aspect of having a prosperous financial future. A good credit score can lead to job opportunities, apartment rentals, and even the ability to turn on your utilities.
This post will teach you how to raise your credit score as quickly as possible, but keep in mind that it may still take some time. There are no assurances because everything depends on your unique scenario.
How Long Does It Take to Get Your Credit Back on Track?
It is generally determined by the bad information on your credit report (e.g., late payments, bankruptcy, excessive queries, etc.). It could take as little as a month or as long as a year or more and it all depends on what you’ve done in the past and what you’ll do in the future.
The length of time it takes for your credit score to improve depends on the causes for the unfavorable marks on your credit report, such as a delinquency or a collection account. Regrettably, these will remain with you till they reach a particular age.
- Inquiries might last up to two years on your report.
- Delinquencies can persist for up to seven years.
- Bankruptcies can span anywhere from 7 to 10 years.
It takes time to rebuild your credit and improve your credit ratings; sadly, there are no quick fixes. All you have to do now is tidy up the other stuff in this article that is under your control.
How to Raise Your Credit Score
As previously said, there is no ‘quick fix’ for negative credit scores, but there are some things you can do right now to improve your situation. The following are the most common techniques to raise your credit score:
- Pay off debts with caution.
Isn’t it true that paying off your outstanding collections bill will help? Not necessary, as we’ll explain further below. It sometimes just resets the clock, dinging your history even more. Here are three things to keep in mind:
- Paid collections are not taken into account in the most recent editions of FICO® and VantageScore.
- Pay off your most recent delinquent accounts first, as they have the largest impact on your credit score.
- Non-medical collection debt has a greater negative impact on your credit score than medical collection debt.
Fixing outstanding collections is another important part of raising your credit score. However, approach with caution here, as paying up some collection accounts may not necessarily boost your credit score, but it may actually restart the clock on how long it takes for that debt to be removed from your report. Do your homework.
- Maintain a low credit card bill
In most cases, your credit usage ratio is almost as important as your payment history. The ratio of total debt to the entire credit limit is known as credit usage. Your credit cards may be maxed out or closed if you have a high credit utilization rate or amounts owing.
The solution is to reduce your debts. The better the boost, the smaller your ratio. People with good credit ratings rarely use more than 10% of their available credit.
Each credit card’s credit utilization is determined, as well as an aggregate total. Your credit score might be harmed by even one tapped-out credit card.
- Examine Your Free Credit Reports for Errors
Nothing is perfect. Mistakes are bound to occur. The simplest approach to raising your score is to correct errors. According to the Federal Trade Commission, one out of every five people has a mistake on their credit record. When it’s relatively easy to repair, don’t allow misreported information to be the source of poor credit.
Checking your credit score on a regular basis is an important first step toward improving your score. If you don’t know what the number is, how can you look it up? Those that check their score on a frequent basis reap the rewards, as shown in the graph below.