Although there are no sure-fire ways to improve your less-than-appealing credit score or derogatory credit file instantly, there are promising short cuts that borrowers can use to have their scores inflated in just a matter of a few months.
Know Where You Stand The first thing you will need to do is get a good feel of where you are at on the credit totem pole by pulling your own credit report.
Be certain to obtain your credit report with score from all three major credit reporting agencies.
Legally, you can obtain your credit report (without score) free once each year from each bureau that holds records on you.
By looking for erroneous information that has been reported on all three reports, you can add points to your score when you ask for them to be removed.
The process of removing an error from your credit report can take a month or longer, but is well worth the wait.
You can dispute most errors online, or in writing.
Be sure to attach any documentation, such as proof of payment, to the dispute.
When mailing in your dispute, using certified mail with return receipt gives you proof that you have disputed the item.
Further, dispute any account that is listed that you do not recognize - these types of accounts may not belong to you, although this type of error is common.
The credit bureaus are required to investigate any discrepancies that you note.
Establish Great Payment History Because more than one-third of your credit score is based upon your payment history (or lack of), pay all your bills on time, before the due date whenever possible.
If you pay all of your bills on time for a period of just six months, your credit score will zoom up by a dozen points or more.
This applies to utility bills, loan payments, credit cards; even unpaid parking tickets can show up on your score with a derogatory remark.
Get Two Secured Credit Cards A secured credit card is one of the fastest ways to improve your blemished credit file.
They are so fast, most experts recommend that you get two of them! To get your secured credit card, you will apply online with a reputable secured credit card issuer.
They will ask you to make a deposit of record on your new account; this is simply a monetary deposit that you make to the issuer to secure your credit line.
Your deposit should equal the amount of credit that you wish to have extended on your behalf.
Once you have established two secured credit cards, you should use them wisely by never exceeding more than thirty percent of your available credit.
So, for instance, if your available credit on both of your new secured credit cards is $2000, spend only $600 total on both cards each month.
In turn, pay off all but ten percent of the balance, or in this case, leave a balance of $60 ($30 on each card).
Repeat this process monthly; within just a few short months you will see a great improvement in your credit file.