Raise Credit Score Fast in 5 Easy Steps

Who doesn't want a high credit score? With a high score, you can get a loan with low interest rate. Additionally, having a good score would influence the amount you would pay as down payment for the loan. Generally, with a higher credit score, you get a low interest rate and a low down payment. That is why everyone is concerned about how to raise credit score fast. In this article, I have outlined 5 simple steps that would guarantee a raise in your score.

1. Go Get a Copy of Your Credit Report
Repairing credit begins with getting your credit report and checking it for errors. If you have ever used credit, it is almost certain that there would be errors in your credit report. If left uncorrected, these errors will continue to hurt you.

So get your credit report from the three reporting agencies -- Equifax, Experian and TransUnion. Contact the credit reporting agencies immediately if you find errors in your report. You have nothing to lose, but everything to gain. Just remember that checking your score will in no way harm you. You may find errors that when corrected would raise credit score fast.

2. Reduce Your Credit to Debt Ratio
What determines your ability to pay back a loan is your credit ratio. You may not be able to fulfill your repayment obligations when your total debt exceed 40% of your income. That is why lenders are really interested in your credit to debt ratio.

Your score is negatively affected with a high debt ratio. You can raise credit score fast by lowering your credit to debt ratio. When you do this, you can raise your credit score by as much as 70 points in a matter of 30 days or even less.

3. Pay Bills on Time
How can you put a limit on learning more? The next section may contain that one little bit of wisdom that changes everything.

Many people fail to pay bills on time because of forgetfulness. So don't allow forgetfulness to sink your score. Take note of important dates when your monthly payments are due but make it a goal to pay a day or two earlier. Failing to pay on time would make your creditors to report the missed payment to the credit reporting agencies.

4. Dispute Every Error Found
To raise credit score fast, you must learn to spot errors or wrong information on your credit report. Sometimes, your credit report may show that there is an outstanding balance on a loan you have paid off completely. Contact the credit reporting agencies immediately when this happens. You score could gain as much as 20 - 80 points when you get the errors corrected.

Additionally, be sure to look out for charge-offs and late payments that are not yours. And do not delay disputing the entries.

5. Do Not Go Frenzy With Loan Shopping
Although it is wise to shop for loans and make comparison before selecting one, do not let it get out of control. This is because with each loan application you make, your credit score is negatively affected. Do not go berserk with loan shopping. Search wisely.

Everyone should be interested in knowing how to raise credit score fast considering the many benefits that come from having a good score. But like every precious thing, raising credit score fast requires discipline and diligence.

Of course, it's impossible to put everything about credit card score into just one article. But you can't deny that you've just added to your understanding about credit card score, and that's time well spent.