If you’ve ever tried to lease an automobile, get a home loan, or even just sign up for cable television, you know that your credit score is important. A bad or non-existent credit score can make it hard for you to get the things you need in life. You might find it hard to get a job, lease an apartment, rent a car, or even get extended credit at stores. But that doesn’t mean you can’t improve your credit score fast and easily. So what exactly is a credit score and why does it matter? Your credit score is a numerical value based on how you manage your financial accounts such as loans, savings accounts, and other debt like student loans and mortgages. It helps potential lenders predict whether you are likely to repay them if they give you money. If you have a low or bad credit score, it means that somewhere along the line something has gone wrong with your ability to responsibly handle money. The good news is that there are things anyone can do to improve their credit score fast and easily!
Check Your Credit Report
The first step in improving your credit score fast and easily is to check your credit report. This is a free report given to you by the three major credit bureaus every year. It details your entire credit history, including open and closed accounts, your payment history, and any current credit debt you have. If you have bad credit, the first thing you should do is check your report to see what’s causing it. Then, you can work on fixing the problem.
Pay Off Debt
If you have credit card debt, medical bills, or any other form of debt on your credit report, it’s going to be difficult to increase your credit score fast and easily. This type of debt is called “bad debt” because you are using it to purchase something that is not really necessary. While it’s good to be responsible enough to pay your bills, you should start by paying off debt and then putting money into savings. Your credit score is based on your ability to repay loans, and if you are carrying debt, it means you are not able to repay loans.
Create New Good Habits
If you have bad credit, it’s likely because you have had credit in the past and failed to pay it off. This can be for many reasons, but no matter what your score is now, you can always change your habits to improve it fast and easily. You can begin by paying your bills on time. This is one of the most important factors in your credit score. You can also try to keep your credit card balances below 30% of your available credit. This shows lenders that you can responsibly use credit.
Check Your Credit Score Regularly
The best way to see what your credit score is is to check your credit report. But you should also check your credit score regularly. You can get a free credit score from various websites such as Credit Sesame and Credit Karma. When you check your credit score, you will just see the three-digit number that is used to calculate your credit score. You don’t get a breakdown of what makes up your score.
Set up Automatic Payments
If you have existing debt, you can start to work on it right away. But you might want to consider setting up automatic payments. This means that you set up payments to go straight from your checking account to the lender. It can be a bit inconvenient, but it will ensure that the debt is paid off much more quickly. You can do this with any debt you have on your report such as credit cards, student loans, or a car payment.
Utilize a Layaway Plan
If you want to purchase something expensive like furniture, appliances, or even a car, you need a good credit score. It is unlikely that a store will extend you credit if you have no credit or a bad credit score. But you can get around that by utilizing a layaway plan. You can set up payments and have the item held for you until you have paid it off. It’s not ideal, but it’s a good short-term solution.
Install a Fraud Alert
If you have bad credit and are struggling to lift it up, you can request a fraud alert. A fraud alert is essentially a message that is recorded on your credit report stating that someone has attempted to steal your information. It can help to protect your credit score by making sure that lenders know to be extra careful with your account. You can request a fraud alert either online or by telephone.
Get a Co-Signer or Become an Authorised User
If you have bad credit, you can get a co-signer or become an authorized user on a credit card account that has a good score. This means that someone else will be responsible for the debt if you fail to pay it. It’s not a long-term solution, but you can use it to get an apartment or be able to lease a car without having to worry about your credit score.
Repair Your Credit Fast and Easily
Finally, if you have no other choice but to repair your credit fast and easily, you can take out a secured loan. This is a loan that is secured by something you own like your car or even your house. You can take out a loan and then use it to pay off any negative items on your credit report. It’s important to make sure that you make the payments on time so that the lender doesn’t come after your collateral. For the best ways to improve your credit score fast and easily, follow the tips above. They will help you to develop responsible financial habits and will make it easier to obtain loans and other types of credit in the future.