Improving Your Credit Quickly

A credit counseling agency isn't the only way to improve your credit situation in a reasonable amount of time. Get suggestions on how to boost your credit score quickly here.

1. Keep each card balance at less than 30% of the limit. Rather than having one credit card that is maxed out and several others at 0%-10% of their limits, distribute your debt so you use about 20%-30% of the maximum on each card. Creditors don't like to see you overuse any one card; it makes you look desperate.
2. Dispute errors. Before you sign up with a credit counseling agency, you should try to do everything you can for your credit and debt situation on your own. One way you can improve your situation significantly is by disputing any erroneous items on your credit report. You will need to do so by writing a letter to the appropriate credit bureau(s).
3. Pay down balances. Of course, paying down balances sounds easier than it really is. However, with the help of a credit counseling agency, you can quickly pay down your balances. Paying down your balances will reduce your debt-to-income ratio, which is a major determinant of your credit score.
4. Pull your credit report to identify liabilities. If you don't know what is on your credit report, you can't possibly know what items are hurting your credit score. Your credit counseling agency can help you pull your credit report, but you can easily do it yourself as well. Just visit one of the three credit bureaus' (Experian, TransUnion, & Equifax) websites to request your free annual credit report. Once you receive your report, use it to identify liabilities, such as late or overdue payments.
5. Stop using your credit cards. You can't make any real headway with your credit if you are perpetually racking up new debt. For your repayment efforts to make a significant difference in your credit score, you will need to stop charging items to your credit cards. If that seems too challenging for you, try to stop for just one month at first and then go from there.
6. Find a co-signer. When you use a co-signer, his/her good credit will be reflected in your credit, and you will have a better chance of qualifying for loans. If you can find someone who's willing, get a co-signer on a credit card or an auto loan, for example. Just make sure you make the payments on time or you will harm your co-signer's credit.

Now that the research has been done, apply for credit counseling at the Credit Counseling Lounge now!