What it the Fasts way to increase my credit score?

Question

How can I increase the my credit score. What steps can I take to ensure I impact my score positively. In the shortest amount of times. I would like to buy A house in a few months and need to work on my credit score

Answer 1

For buying a house Credit History is much more important than credit score. Often, the lack of credit history is equated with bad credit. You should be aware that lenders will go through your credit report once you apply for loan for buying a house. Therefore you should polish your credit report. Anyway, in order to establish a good credit history and at the same time risen your credit score in a short time do following things:

1) Close all of your credit cards but one. It reflects in your credit report and it is a very good sign. For instance say that you have 5 credit cards with $1000 credit limit for each. Therefore you are responsible for $5000 of possible debt. But when you close 4 of them, now you are only responsible for $1000 of debt which lowers the level of risk of lending money to you.

2) If you have any loan, like car loan or any balance on your credit cards, try to pay more than your monthly payment for 6 months or something. I mean say your monthly due on your car loan is $150, try to pay $250 each month. Lenders can see these trends in your credit report and they see that you’re a responsible borrower.
If you don’t have such loans, I suggest getting a $3000-$4000 loan and paying it off in full in 5-6 months. You might pay $200-$300 of interest but you will save thousands of dollars in your home mortgage and interest rates.

Also checkout http://www.howtoestablishgoodcredit.com/Credit_Articles/index.php
There are lots of articles there, related to your question, which you can find useful to boost your credit.

Answer 2

Do not run up your credit cards and make sure that you don't have too many, they look at both of those things when you are buying a house. They think if you have a lot of open credit cards that after you buy your house you will rack up debt on them to furnish your house, they see that as a negative. They worry that you will get in too deep and default on your mortgage.

Never close a credit card account with out making sure that the institution that it is through, puts down that you requested it closed. It will look like a negative if they should think that the institution requested it closed, like you are a bad risk. It gives a negative appearance. If you close a card and they make a mistake when they put down why the card was closed, fight it all the way to get it changed. As it can lower your credit score.

There isn't a fast way to build credit unless you have a lot money to pay off your cards with large amounts and such. Credit is built slowly, little by little. That's why your credit means so much to you, if some one does identity theft. Or if you have a bankruptcy, it can take years to rebuild.

Check your TRW's to see where your credit score is as you already know the higher the score the better off you will be. It has taken me about a good 9 or more years to build my credit to a score in the 800's. Were talking buying cars/house and using credit cards and paying all on time, no late payments. And paying things off, such as cars etc.

There isn't a fast way to do it, but there is a correct way to build it so that you will on top of your game. I'm sorry to tell you this.
Good luck to you.

Answer 3

You should get a copy of your credit report.
Start paying off any outstanding debts. If your score is low due to lack of credit not bad credit I would suggest taking out a secured loan. Its a simple process, you give the bank $500 ( or amount of your choice)and they give you a loan in the same amount. They are guarnteed the money because you have secured it with your own. You make payments on the secured loan for approx. 6 months and you will be amazed at quickly your score goes up.

Answer 4

Simple things like having both a checking and savings account will increase your credit score. Make payments on time every time, including the phone bill, power bill and rent. And yes, get a credit card like a store card and spend 50 bucks, paying it off 15-20 bucks a month. Carry a small balance. You don't have to spend much at all for it to reflect positively on your credit.

Answer 5

I know exactly what you are going through, as I have recently done the same thing!

1st run your credit report - you need to know what's there TODAY!

2nd Any bill you are behind on or just haven't paid (ie. things in collections, medical bills, phone bills etc.) Pay them OFF, they will come back to haunt you! If you can't pay them off, be prepared with documentation to show that you have made arrangements, and are taking care of business!

3rd Any credit cards that have low balances under $200, pay them off!

Other than that, continue to pay bills on time, Do not (if at all possible) use your credit cards! As you will be adding to your debt!

Hope this helps! Good Luck1

Answer 6

first of all, get a copy of your credit report from all 3 bureaus. then look to see if you have any collections or past due payments. You can try to challenge all of them and just say they aren't yours. You can challenge transunion and equifax online, experian you need to send a letter.

I've successfully removed a couple things from my report just by filing a dispute and saying it is not may account. They will contact the creditor and if the creditor does not respond within 30 days, they will remove it from your bureau.

You'll need to check it periodically though because sometimes collections are transferred to a different agency and they will re-report your debt.

Answer 7

I have been where you are too... through trial and error I learned how to repair my credit. So to avoid my mistakes visit:
http://www.thecreditrepairmanual.com

Answer 8

use credit...pay it off on time...builds credit score evrytime.....thanks for asking...good luck on your new house