Start with the quickest way to boost credit scores. Learn how to get that 700+ credit score you have always wanted. According to statistics released by Black Knight, a mortgage data and tech company. With the total U.S. mortgage delinquency rates soaring to a 10-year high at the end of July 2020.
And with 85% of those still in arrears and are tied to some forbearance measure. There are a great many people who now have bad credit.
These numbers have not even factored in the tens of thousands of consumers who have in arrears credit card balances, unpaid bills, unsecured debts that are overdue, or all of the personal and auto loans that have defaulted.
Horrible credit happens in several steps, for example, when:
During your life, the odds are you'll need to seek financial support in the form of loans and credit cards at some point.
Regardless of your motivation to borrow money, your credit rating will affect your ability to secure credit and the amount of interest you will have to pay.
And that's not all; employers and even landlords are now running credit checks before hiring or renting, respectively.
An excellent credit score is good; a low score is terrible.
There are several benefits to having excellent credit. Utilizing the quickest way to boost credit and successfully bumping your credit score from the "horrible" range to the "excellent" range could save you thousands of dollars on your mortgage, student, auto, and personal loans!
Recent data from loan marketplace LendingTree outlines the difference in interest costs across the various credit score tiers. In total, the data shows that consumers with fair credit scores end up paying over double as much interest on car, personal, and student loans and 97% more on their credit cards.
Aside from saving you thousands of dollars in interest rates, learning the quickest way to boost credit scores and establishing solid credit will also affect insurance rates and your career.
Rebuilding horrible credit or even bumping up your "fair" or "good" FICO score to "excellent" can often feel like you've been sucked into the world of JUMANJI and left to navigate through its wild tropical jungles.
It's disorienting and can feel like a lot of effort. Luckily, you can master the quickest way to boost credit and see your score reach new heights when equipped with the proper knowledge.
With that, here are some expert hacks on how to raise your credit score – and do it quickly:
1. Check Your Credit Record For Accuracy
Rebuilding an impaired credit record starts with reviewing your credit files. Attempting to implement the quickest way to boost credit without checking your credit reports from the three credit reporting bureaus is like embarking on a getaway to the wilderness without a GPS. In this scenario, your credit files are your GPS.
Remember, there are credit killers out of your control, such as identity theft and fraud. Regularly checking your credit files can be an effective proactive way to improve your credit score. Use a credit report monitoring service to alert you of possible credit fraud.
So, if you haven't already, visit AnnualCreditReport.com now and request a free copy of your credit records from all three credit reporting companies: TransUnion, Equifax, Experian.
Once you get the reports, check them for accuracy, look for debts that are not yours, late payments that you know were on time, etc. If you find inaccuracies or identity theft and fraud incidents, contact the credit bureau and credit provider directly and dispute them.
2. Steer Clear Of Late Payments: Pay Utilities, Credit Cards, And Loan Accounts On Time
It sounds so obvious, yet many consumers still find themselves struggling or simply forgetting to pay utilities, credit card balances, and other payments on time.
Late or defaulted utility payments and loan repayments are credit score killers! They could gut your score and see you lose up to 100+ points. Thankfully, it's an easy one to rectify.
With your payment history contributing a whopping 35% of your overall FICO score, and another 30% relying on the amount you owe, it would be accurate to say that paying bills and repayments on time is the quickest way to boost credit.
Set up reminders and automatic payments to help you pay bills and credit balances on time, and your credit score will improve fast.
3. Don't Close Those Old Credit Cards
There's a common misconception that closing credit accounts, including old credit cards, will improve your score. Fact: Closing a credit account won't help raise your score. On the contrary, keeping your old credit cards open works in your favor!
The age/length of your credit history makes up approximately 15% of your score. That means that as the average length of your credit accounts increases, you'll notice an improvement in your credit score.
This is because having old credit cards – of course, as long as you keep your spending in check and pay balances on time – shows that you've managed to maintain credit for an extended period and, therefore, an attractive(creditworthy) borrower.
Keeping your old credit cards open will increase your credit limit and lower your credit utilization ratio, which significantly improves your score.
4. Only Apply For Credit When You Know You Need It
Applying for new credit accounts at once can wreak unimaginable havoc on your credit. New accounts lower your average credit account age. Also, opening multiple credit accounts triggers hard inquiries, making you look desperate, and only hurts your score.
The next time you consider getting a new credit card, ask yourself: Do I need it? There is no reason to get into debt unless you must.
What's the quickest way to boost credit in this situation? It's simple, really: only apply for new credit lines when you need to and not because you can.
5. Reach Out To A Legit & Experienced Financial Counselor
Sometimes, life happens, and you find yourself stuck in the murk struggling to make ends meet. It's easy to keep things to yourself under such circumstances, hoping and praying that you will get back on your feet soon.
Don't be embarrassed to ask for help. Seeking help from professionals or even friends (by asking to become an authorized user on their credit cards) is the quickest way to boost credit and is also one of the best things you can do to improve your score.
If you're having trouble managing your finances, spending, and debts, contact a legit financial counselor because this can raise your score immediately (depending on the seriousness of your credit impairment).
Financial counselors offer various tools, resources, and services, including guidance, debt management counseling, and accountability, which can help you make self-directed borrowing and spending changes that bump up your score and move your closer to your financial goals.
Raising your score quickly if you have bad credit doesn't have to be complicated. You are now equipped with the best hacks to help you boost your score – and do it fast. Got a credit repair question? We're here to give you answers.