Accounting & Finance
The Fastest Ways to Raise Your Credit Score
According to a recent survey, 8 out of 10 people are trying to improve their credit score.
Fast forward six months, and a lot has happened that is putting a lot of stress on credit scores, including being furloughed or made redundant.
If you’re trying to improve your credit score, read on, and you’ll discover some of the fastest ways you can improve it including selling your home to get rid of bad debt. No matter how bad your credit score currently is, these tips should help you turn things around.
1. Make More Than the Minimum Payment
If you have a lot of bad debt, you will find that your credit score drops, so to improve it one sure way is to pay back more each month than the minimum payment.
If you can do that, you will pay off your debt faster, and this will then shorten the amount of time it takes to improve your credit score.
Sell Your Home
Another option is to get rid of debt fast is to look at assets you can sell for a profit. For most people, their home is their biggest asset. While you may have a mortgage selling your home may be the best option to improve your financial position and thus your credit score dramatically. However before you rush to list your property for sale, make sure you understand what it’s worth and that selling it does put you in a better position, i.e. there will be some profit from the sale that you can use to pay back the bad debt.
If you’re going to go down this route, you might also want a quick sale, and you can get it with cash home buyers.
While these individuals might not offer market rates, they can allow you to sell your home quickly. While this may seem a rash move, often it’s better than leaving your house on the market for months without a sale. You may get less profit with the fast sale, but it can shorten the amount of time it takes to pay off your loans, thereby allowing you to improve your credit score quickly.
Make sure you get independent financial advice from an expert like your accountant, lawyer or financial advisor before agreeing to sell your assets so you know you’ll be in a stronger position as a result of the sacrifice. Plus when it comes to your home, sell it, and you will need somewhere else to live.
2. Are There Any Mistakes on Your Credit Report?
Research shows that around 79% of all credit reports contain some kind of error.
Following this, there’s a good chance you might have an error on your credit report. If you correct these errors, you will be able to achieve some quick improvements in your credit score.
When looking for errors, you typically want to look for any accounts that you didn’t set up, and this can happen if you’ve been a victim of fraud, and it’s one of the most common reasons for an error.
You might also want to look for payments that have been marked as late in error, as these can also harm your credit score.
3. Increase Your Credit Limit
Increasing your credit limit is another way you can quickly improve your credit score.
If you’re going to do this, the best approach is to ask your existing lender to increase your credit limit. In some cases, they will do this without conducting a ‘hard’ credit check, which can sometimes harm your credit score.
What’s the Fastest Way to Raise Credit Score?
Before you read this post, you might’ve been asking yourself, “what’s the fastest way to raise credit score?” However, now that you’re at the end, you should hopefully know of a few tactics that’ll help you achieve some quick credit score improvements.
Raising your credit score is not an easy task, and you will probably have a hard time. But, if you keep thinking about the benefits that come with an improved credit score, including getting back on the property ladder.
Want to read some more content like this? Go to our blog to see some of our latest posts!