How long does it take to fix bad credit scores? Eternities really, for every hour, every day and every month is that big of a pain when you have a bad credit history. Having good credit scores is more difficult today than it is to keep the economy’s inflation rates low, and that is because there are innumerable new debt generating options available to people now. Yet, having good credit scores is absolutely essential if you are to take on any more debt in the future at reasonably competitive rates. Bad credit scores only mean refused loan applications, for either they refuse you for being a high credit risk, or you refuse them for quoting horrendous interest rates. If you wish to spare yourself all that and have bad credit scores, here are a few steps to fix credit scores fast.
Why Do you Need Good Credit Scores?
Not only do good credit scores make you eligible for other loans, say car loans or home loans, but they also give you better interest rates, as you pose of lesser credit risk to the lenders. Apart from this, the bonus of having good credit scores is that as they are a reflection of how you handle financial responsibility, they increase your probability of getting good jobs. Many companies today check applicants’ credit histories to gauge whether the candidates are responsible enough. So what happens if you do not have this lauded ‘good credit score’. Do not worry, your life does not end there and all you need to know are a few credit repair tricks.
Ways to Fix Bad Credit Fast
The best way to do away with bad credit is to not expect overnight results and if anyone is promising them to you, you should know that they are lying. Though not overnight, you can definitely fix your bad credit if you follow some of the things given below.
Lower Your Debts
Paying off your loan installments does not work as fast on your credit score as paying off revolving accounts does. So in order to fix bad credit, you must shell out some money and pay off your credit card dues. Ideally, if you keep your credit card debts below 30% of your credit limits, you will doing your credit scores a world of good.
Cut Back Spending, Start Up a Budget
Disciplining yourself where spending is concerned and curbing your spending habits with a tight budget is actually the best long-term way to improve your credit scores, for it will help you from not creating newer debts.
Check Your Credit Scores and Your Credit Limits
If your lender shows lower credit limits than actually are on your credit card, your credit scores may get adversely affected. So it is always good to check your credit scores periodically and also ascertain if your lender has appropriately shown the right credit limits on your cards.
Older Credit History
Like aged wine, aged credit history gives out a better credit score picture. If you have an old credit card lying around, you must start using it again for this way, you keep updating those old accounts with the credit bureau. Old credit accounts show consistency of performance.
Credit Score Errors
Many a time, the easiest way to fix bad credit fast is to identify and correct incorrect negative information that the credit bureaus have on you. For example, if you had paid a bill on time but the lender failed to report it as so, there will be a late payment mark adversely affecting your credit report. If these simple mistakes are corrected, your credit score automatically improves.
If you have small unpaid bill marks, you can consistently go to the credit bureaus and contest their charge either as ‘not mine’ or as ‘incorrectly stated as a late payment’. With old and small negatives, the credit bureaus do not take the verification efforts and it is very likely that you will be let off the hook. Your credit scores will improve once the negative mark is erased.
Nothing works better to fix bad credit fast, as generating goodwill does. If you have consistently (you may have noticed that I use this word often and that should be a hint) shown yourself to be a good borrower, you may be let off the hook for one delayed payment. A lender may choose not to report you as a late payment given your good past record and this will certainly help you credit scores.
Opening a bank account and always maintaining a healthy amount of funds in them, helps improve your credit score, as banks usually report this to the credit bureaus.
Retaining Paid Accounts
It is wise to let already paid accounts stay open as this helps improve the credit to debt ratio. Improving this ratio is usually the fastest way to fix bad credit by improving credit scores.
Though these were some effective ways to fix bad credit bast, they will not help you if you do not do them properly. The idea is to do good things and to make sure that the credit bureau notices them. Good luck with rebuilding your credit scores.