NMLS# 3151

Tuesday, June 24, 2014

3 quick credit boosting tips that you can complete by the end of the day

So maybe you had a late payment or one of your accounts was placed into collections, but that doesn't mean your credit is doomed forever.  The best situation you could be in when it comes to your credit is to know where you stand.  If you know where you stand with your credit than it's much easier to take it by the reigns and keep in under control.  Follow these 3 quick credit tips below to help you get started:

Task: Get rid of any errors on your credit report. 
Time: 1 hour
Length of time until you see results: Up to 30 days

If you haven't pulled a credit report within the last 6 months to a year, you might want to start there to give you a better idea of what your credit score is at the moment.  By going to annualcreditreport.com you can pull a free report, one from each of the three credit bureaus (Experian, Transunion and Equifax).  This can be annually at no cost so we highly suggest taking advantage of it.

Now, while some credit report errors may not have any affect on your credit score at all, others can severely impact your ability to get approved for future credit lines.  Inaccuracies on your credit report will likely not matter but any delinquencies or items reporting in error should be resolved immediately.  The sooner you get derogatory items off your credit report, the sooner your score will boost.  In order to get such items removed from your report, you will need to dispute the error with the credit companies.  This can be done within the annualcreditreport.com website or by calling up the creditor directly.

Task: Write a forgiveness letter to remove a late payment or collection account 
Time: 15 minutes
Length of time until you see results: Up to 30 days

Even just one late payment or past due collection account can negatively affect your credit and can continue to hurt it for up to two years.  The best thing to do is try to remove the negative credit item, which is possible a lot of the time with prior history of acceptable credit use.

Start by writing a letter to the creditor that explains your situation and why you may have missed a payment.  If you've had a job layoff, illness, or other circumstantial issues but still otherwise still have a good credit history then a lot of the time the creditor will forgive you for the one time missed payment and remove it off of your report entirely.  If this is done, the derogatory item will no longer weigh down your credit score and you should see an immediate boost once it drops off.  Please note it can take usually 30 and sometimes up to 90 days for these items to show as removed from your report.

Make a plan to pay down any high credit card debt
Time: 30 minutes
Length of time until you see results: Anywhere form 7 to 10 business days, or up to 30 days.

Do you carry a high revolving balance on your credit cards each month? If so, it's time to start thinking of plan to pay down those balances over time.  The goal is to never have a balance of more than 30% of your total credit card limit.  If you've normally been paying down your card by $100 each month, try a little more like $150 or even $200 a month.  Every little bit counts and the more you keep your balances low, the better for your credit score.

Do you have any credit tips that you've found to really work for you and your financial situation? Share them with us and our readers below.  We would love to hear what others are doing to help boost their credit, quick.  

No comments:

Post a Comment