If you’re struggling with a lot of debt or have a low credit score, you probably want to know the best methods of fast credit repair. While there are a number of ways to quickly improve your credit score, it’s important to note that there are many situations where getting completely out of debt or obtaining a stellar credit score may take months or years.
However, there are still quite a few things that you can do to give yourself a quick boost to your credit score. This can help you increase your chances of obtaining a loan or being approved for a credit card. Additionally, a good credit rating is often key to being able to obtain low interest rates and avoiding cards with high fees or having to pay just to have a credit card.
Make Sure Your Credit Report Is Correct
One of the fastest and easiest ways to quickly improve your credit score is to fix any inaccuracies on your credit report. You can run one free credit report every year, although it may be a good idea to run reports from several trusted reporting agencies.
Agencies may not always have the most up to date or correct information, so you may find that bills that you have paid are listed as unpaid. Additionally, credit reporting agencies track if your accounts are current. You may find that you’re being reported for bills that were paid on time or accounts that have been brought up to date but are still listed as delinquent.
If you discover errors on your credit report, the FTC recommends that you contact both the reporting agency and the creditor about the error. Once your credit report has been updated, you should see an increase in your score.
Pay Off Small And Late Debts First
There are several things that go into determining your credit score, including how much money you owe, if you have missed payments or delinquent accounts and how many creditors you owe. While paying down the total amount that you owe to creditors may have a larger effect on your credit rating, if you want fast credit repair, it may be best to tackle smaller debts first.
It’s likely that it will be far quicker and cheaper for you to tackle the smallest debts that you have first and to make sure that you’re up to date with all of your creditors compared to trying to pay off all of your debts at once. While this may mean that you’ll end up paying a bit more overall to get out of debt because you’re not going after highest interest rate debts first, it is liable to be the method that will provide the speediest boost to your credit rating.
Use A Secured Credit Card
If you have very poor credit, and this is often the case after a bankruptcy, you may have trouble getting a credit card. While you may want to avoid going into more debt, a credit card that is paid on time can greatly improve your credit rating. This is often true irrespective of your credit history.
One way to get a credit card, even with poor or no credit, is to use a secured card. A secured card requires that you pay for whatever credit you’ll be able to use ahead of time. For example, for a credit card with a $500 limit, you’ll need to pay $500 in advance. However, you’ll get the money you put in back after a certain period of time. Additionally, this will help ensure that you don’t end up going into debt with another card.