Improving Your Credit Score Inside of a Year or Less
No matter what your financial situation is, the health of your credit score is vitally important. In this entry, we’ll share a few handy-dandy tricks you can use to quickly improve your credit score by 50 – 100 points.
Why Your Credit Score is So Important
As far as numbers go, your credit score is one of the most important digits attached to your name. It often is the deciding factor in:
- Whether or not you’re approved for a mortgage, car loan, credit card or other type of loan
- How much you’ll pay in interest
- Being approved for housing in an apartment and the size of your security deposit
How to Improve Your Credit Score
- Pull your credit score so that you know what you’re dealing with. Many people are reluctant to pull their credit score because of simple fear. But if you’re serious about improving your situation, you need to pull the report and give it a good looking over.
This is important because there may be items previously unknown to you – such as ID theft issues or simple errors – that can be cleared up rather quickly. If there are items on your credit report that don’t look right, contact the company you supposedly owe and request a letter of proof stating why you owe the debt in question.
- Know your debt utilization. How much credit available to you and how much of it you’re actually using is another crucial aspect of your credit score. Ideally, you want your credit usage on individual accounts to be less than one third.
For example, if your credit limit is $1,000 on a particular credit card, do not put more than $300 on it without paying off the balance in full.
- Credit consolidation can be a good option for you. In an earlier article spoke about debt consolidation. If you decide to go that route, you’ll probably see a noticeable jump in your credit score almost immediately.
Even though you still have the same amount of debt, you’re lowering your debt utilization. Because it’s an installment loan rather than a revolving account, you’ll basically be merely keeping up with monthly payments.
Call The Oswalt Law Group for Advice in Dealing With Crippling Debt
It’s true that there are no shortcuts to repairing your credit. But by following the steps above, you can make a seriously positive change in your credit score inside of a year. For more advice about coping with crippling debt, get in touch with us here at The Oswalt Law Group for a free consultation. Our number is 602-225-2222.