Knowing what to do to increase credit scores fast is an essential step in your financial life because this three-digit number is what lenders use to determine your ability to repay their loan on time. If you have a higher score, then lenders will be convinced you can repay on time, and so you can qualify for credit cards and loans with terms that favour you.

If you don’t like how your credit history looks, you’re not alone. It takes time to increase credit scores fast, but the sooner you deal with those issues that may be dragging you down, the quicker your credit score will rise. You can raise your credit score by following these steps.

5 Steps to Increase Credit Scores Fast

To raise credit scores, you should start by looking up your credit scores online or by going through your latest credit reports. When you get the scores, you’ll also find information regarding the factors that affect your scores to a large degree. 

These factors will guide you into understanding the changes you may need to make to see an improvement in your scores. You’ll need to give some time for the creditors to make any changes you make so they can subsequently show up on your credit scores.

It’s also worth noting that some credit score factors are more important than others. Credit utilization ratios and payment history are some of the most crucial in most credit scoring models, and cumulatively, they can form up to 70 percent of a credit score, and that means they’re quite influential.

By focusing on the following actions, your credit score will improve with time. credit scores are a reflection of credit payment patterns over time, and especially on recent information. Here are the steps:

1. Increase Credit Scores With Credit Building Products

35% of your credit scores is the revolving payment history. If you have little to no good payment history revolving for you it could be impossible to increase credit scores. One of the ways to increase credit scores fast is to establish more good payment history. 

We use things like Rent Reporting. Another very effective credit line we use is My Jewelry. It’s a great way to establish a high credit limit with bad credit. The higher the credit limit, the better you’ll see a increase credit scores. See other Credit Building Products Here.

To have a positive impact on this scoring factor, you should pay your bills on time and as agreed each month. Submitting late payments or sending an amount below what you initially agreed may have a negative effect on your credit score.

2.Keep the Balances Low on Your Credit Cards and Revolving Credit

One of the most important numbers in the calculation of credit score is the credit utilization ratio. It’s computed by adding all the credit card balances at a given time divided by your total credit limit. 

To find out the average credit utilization ratio, go through all your credit card statements for the past 12 months. You should then add the balances on each statement for all your cards and divide it by 12. That will show you the average credit you use every month.

Typically, lenders prefer a low ratio of 30 percent or less, and individuals with the best credit scores have usually have the lowest credit utilization ratios. Lenders interpret a low credit utilization ratio to mean you haven’t maxed out the credit cards, and you probably know how to manage credit effectively.

 You can have a positive influence on your credit utilization ratio by:

• Keeping the balances on your credit cards low and paying off debt
• Use someone else’s account as an authorized user provided the person uses credit responsibly

3. Don’t Close the Unused Credit Cards

It’s wise to keep unused credit cards open provided they don’t cost you any money in terms of annual fees. If you close an account, you may increase the credit utilization ratio, making it hard to increase credit scores fast. If you owe the same amount but have fewer open accounts, you risk lowering your credit score.

4. Don’t Apply for a Lot of New Credit as it Leads to Multiple Inquiries

When you open a new credit card, you raise your overall credit limit. However, the very act of applying for credit results in hard inquiry on your credit report, and numerous hard inquiries may affect your credit score, even though the effect will fade with time. Hard inquiries usually stay on your credit report for not less than two years.

5. Dispute Inaccurate Items on Your Credit Reports 

Be sure to check the credit reports from all of the three main credit reporting bureaus-TransUnion, Experian and Equifax-for possible inaccuracies. Any incorrect details on your credit report can drag your credit score down. 

You should verify the accounts included on your credit reports are accurate. If you come across errors, you should contact a reputed credit repair company to help you dispute the information and get it fixed.

Final Thoughts

It takes time to rebuild credit and increase credit scores fast. Start improving credit by reviewing the individual factors that affect your credit score. You can then work with credit repair professionals who will advise you on ways to build credit in a bid to improve scores. 

Just be sure to read the company’s testimonials from previous customers, know exactly how they offer their credit repair services, and go through a written contract before you accept and start.

At Optimum Credit Solutions, we offer top-notch credit repair services to help increase credit scores fast and get your financial life back on track.