4 Quick Fixes For Your Credit Score

If you are trying to get your credit score fixed as quickly as possible, there are a few techniques that you can use that will dramatically impact it in very little time. These methods will work best for those that have a low score, but many will also impact a medium to high score as well. Before you get started it is a good idea to set up a credit score monitoring service so that you can watch your progress.

Step One – Get rid of any collections you may have accumulated.

This is generally the biggest problem with low credit scores. You’ll need to determine whether or not the collections account is accurate and then take steps to fix it. If it is inaccurate, you can file a dispute with the three main credit reporting agencies to have it removed. If it is a valid collection, you’ll need to send the company a letter requesting a Pay for Delete.

You need to take this initial step for one very important reason. A collections agency doesn’t have to remove the record from your report. They can mark it as paid, but it will still be sitting there, dragging your score down. You need to work out a definite plan with them to get it removed before you pay them. Once you have their agreement that they will remove the record from your report in exchange for payment, then you can send them a check.

Step Two – Check for any errors on your report.

Small errors can add up to big problems on your credit report. Scan through it and see if you can spot any problems. If you do, you can file disputes again to have the information corrected. Disputes can take up to 45 days to settle, but in terms of getting your score fixed quickly, this is very little time.

Step Three – Handle any past due balances.

If you have accounts that are past due, bringing them current again will help you score. The effect won’t be as dramatic as it is for getting rid of collection accounts, but you will see a difference. Pay on those accounts each month and in six months, you should see a bigger change in your overall score.

Step Four – Pay down high balances.

Part of your credit score is determined by how much debt you are carrying versus open balances. If that ratio is too high, your score will be affected adversely. You’ll need to pay down those balances to a more reasonable level to free up as much available credit as possible. This will impact your score quite well.

One thing that you want to avoid is canceling or closing your accounts. This will actually lower your score in many cases. Even if you don’t have a balance on a card, you’ll need to keep that open. You can use it for small purchases and then pay it off each month to continue getting benefits towards your overall score.

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