Struggling with a bad credit is not an easy task. Facing reality means dealing with higher interest rates, higher monthly payments, and everything that’s just not wallet-friendly.
If you want to improve your credit score quick, you must make it a habit to check your credit report on a regular basis. You can actually ask Experian, TransUnion, and Equifax for a copy of your credit report. You get a free copy from them every year so make most of it. Spot the errors and dispute them either by yourself or by hiring a credit repair company.
Another way to improve your credit score quick is by working hard to pay off your debt. Make large payments on those credit card bills. When your balances go down, your credit score will be pushed up.
You can also try to get a debt consolidation loan so you can manage your debt better. Instead of paying multiple lenders, you only have to deal with one, plus the benefit of a lower interest rate and lower monthly payment.
When you try to stay on the right path and make sound financial decisions, your score will go up within a couple of months or even sooner. It might not be the case for other instances. Let us look at specific scenarios:
After Late Payments
When you make a late payment, your credit score suffers. Just one late payment can pull your FICO score by several points and those with higher credit scores can be hit harder. If you are trying to rebuild your credit, it is crucial to make payments on time. However, if you miss your due date don’t make it worse by not paying at all. Your creditors might not report it until it’s 30 days late.
When you make a late payment, do your best to get back on track and do not miss due dates going forward. That is the only sure way to improve your credit score quick.
After Collections
It can be very challenging to boost your credit score following collections. Know what your rights are but here are some practical tips:
Pay debt that are non-medical first – remember that non-medical debts hurt your credit more so go for those first.
Settle debt if needed – instead of not paying debt at all, consider settling them as in the end, it might still be beneficial to your credit.
Prioritize recent collections – the newer collections are more detrimental to your credit than older ones.
After Bankruptcy
Bankruptcies provide consumers with a fresh start, but it has an extreme effect on your credit. When you do a Chapter 13, it can stay on your credit report for 7 years. Those who do a Chapter 7 will have to deal with it for 10 years. Those with a higher credit score fall harder depending on other possible negative remarks on your credit report.
So, what should you do after a bankruptcy? You need to live well below your means and focus on making the right financial decisions if you want your credit score to go up sooner. Do not incur new debt and make sure you have a steady job.
Pay your bills on time so you can rebuild a good history. You should set up a secured credit card to help in the process and make sure you pay it off every month.
Do you want to improve your credit score quick? The FastCredit.Repair team compiled a list of useful tips so you can give your credit score a good push.