A recent study by the National Foundation for Credit Counseling has revealed that a number of people feel embarrassed to reveal their credit score than their weight. Life is challenging especially during these days with the costs of everything having escalated. Moving the life within the safe tracks is becoming difficult. Even people who are extremely cautious often fall into the trap of bad credit risking their financial health. If you confront a situation to improve credit score fast, you can, however, try these expert tips and find a remarkable improvement. At the same time, always do remember, credit score is arrived at from different angles and you really have to work out the solution from multiple angles to be successful and achieve the goal in a short time.
Points to ponder
All credit histories are not the same. Given this, the right solution to raise your credit score will depend on your situation. If you are planning to purchase a home or car, the best way forward is to check your credit score at least three to six months in advance so that you can repair the damages if anything is noted. The key areas to work on to increase your credit scores are making all your payments on time and working on the credit utilization rate.
Make all payments in time
If there were any late payment issues in the past, this is probably the first area you need to work with. First, ensure all your accounts are at present active and up-to-date. Late payments do figure on the credit report for about seven years. At the same time, the longer ago they were noted, the lesser they impact your scores. Rebuilding credit history must start with making the past due to accounts current. In the way forward, make all the payments in time without any default. FICO scores deem payment history as the most important factor. In fact, they make up about 30 percent of your credit score.
Keep your balances low
Credit utilization rate refers to the balances on the credit card accounts. This can also be called as the balance to limit ratio. The way to calculate this is to total all your balances, divide it by the total of all the credit limits. If you pay off all the balances within a month, your credit card balances will remain as low as possible. As per the rule, never allow the utilization rate more than 30 percent on any one credit card in total. It is better to have the utilization rate as low as possible. Studies show that people with the best credit scores have their utilization rates lesser than 10 percent.
Concentrate on the risk factors
Well in advance of applying for a loan, order your credit report. Having the credit report and score in hand, you can precisely see which areas to work on to improve the credit scores the quickest. Usually, the credit score will specify the factors that are impacting your scores. These factors will throw more light on which areas you must attend with top priority. The higher your credit score, the lower the rates for your mortgage loan. Working on your credit score is, therefore, the surest way to save thousands over the life of your loans.
Improving credit score is a time taking exercise. Even with perspiration from several ends, you will have to put in thoughtfully planned efforts to win the game. However, sitting back not doing anything is not going to improve the situation either. When you are under a big compulsion to increase your credit score within a definite timeline, then the tips discussed above will come handy to help you out with the mission. At the same time, remember there is never an easy road to success.