8 Fast Credit Repair Tips That Actually Work

Do you need fast credit repair now?

Then you can’t afford to miss these 8 tips that can boost your score by 100 points or more in 30 days or less.

A poor credit rating can bring serious personal and financial repercussions. Not only does it impact the ability to borrow money at a reasonable rate, it can impact auto insurance, cell phone plans, and even employment opportunities.

Individuals with questionable credit scores can greatly improve their lives by exploring options for fast credit repair.

What’s Considered a Poor Credit Score?

In order to know if your credit score needs repair, you must understand credit score ranges. A credit score is considered to be “excellent” if it falls in the range of 740 to 850. Scores between 550 and 620 are categorized as subprime, and anything below 550 is considered a poor credit score.

If you fall into one of the lower categories, you may find that your credit score has started to impact your life. Don’t dismay, here are the top 8 fast credit repair tips that actually work.

  1. Understand How Credit Scoring Works

The first step to repairing your credit score is understanding how credit scores are determined. There are five primary factors that credit bureaus consider when assigning a credit score.

Payment History

Payment history typically makes up 35% of the credit score. This is essentially a reflection of how likely you are to repay your debts on time. If you have a bankruptcy filing on your record, it can have a serious negative impact on your score.

Credit Utilization Ratio

This refers to how much credit is being used as a percentage of the amount available. A ratio of 30% or below is ideal.

Length of Credit History

Having a long history of paying your bills on time improves your credit score. This is one factor that may cause brand new borrowers to receive less favorable loan options than their older counterparts.

New Credit Applications

Applying for many new credit accounts at once can be a red flag. This indicates to the scoring agencies that you may be dependent on credit to maintain your lifestyle.

Credit Mix

The type of outstanding debt also impacts the credit score. Rating agencies make a distinction between revolving credit cards, auto loans, student loans, and mortgages.

  1. Pay Down Outstanding Debt

Reducing your outstanding debt will lower your credit utilization ratio. Unfortunately, this isn’t always as simple as it sounds. If you have a lot of credit card debt, you may already be living beyond your financial means.

Paying down debt usually requires significant lifestyle changes and a real commitment. You may need to get a part-time job and seriously evaluate your spending. There are also some mental tricks you can use to stay motivated and pay down your debt as quickly as possible.

  1. Request a Credit Limit Increase

As long as you have a history of paying your bills on time, a credit limit increase can be an easy step towards fast credit repair. When more credit becomes available, it instantly reduces your credit utilization ration.

If your request is denied, you may be able to simply open a new card. The credit inquiry will temporarily lower your score, but if the card has a high limit, the tradeoff may be beneficial.

  1. Fix Credit Report Errors

It’s been reported that 23 percent of complaints posted to the Consumer Financial Protection Bureau’s website had to do with credit reporting errors. You can stay on top of this by checking your credit report regularly. If you notice any errors or inaccuracies, immediately report the problem and request a correction.

  1. Become an Authorized User

If possible, try to find a family member or friend who is willing to add you as an authorized user on their credit account. Understand that this doesn’t mean you have to actually use the card. Simply having your name added to the account brings the following benefits:

  • On-time payments will improve your credit record
  • The card’s credit limit will be added to your utilization ratio

It’s important that the account you are added to is in good standing. Once the credit reporting agency adds the information to your report, it can lead to very fast credit repair. This is also a good strategy for those with limited or no credit history.

  1. Remove Charge-Offs

A charge-off is an account that the lender has written off as being uncollectable. These negative marks can drastically reduce your credit score, and they remain on your credit report for seven years from the time they are listed.

In some cases, charge-offs can be removed before the seven-years have passed. For more information on this credit repair method, check out The Ultimate Guide to Removing Charge-offs from Your Credit Report.

  1. Communicate with Your Collection Agencies

Directly communicating with the credit agencies who have posted negative account information can be an effective strategy. This is most effective for accounts with smaller balances that you are willing and able to pay off.

Reach out to the agency and request a “pay off for delete.” This is essentially an agreement that the agency will delete the negative mark from your credit report if you pay the debt in full. Be sure to take down the name and extension of the person you spoke with, and ask for written acknowledgment of the agreement.

  1. Consult a Professional

Although there are many do-it-yourself methods for fast credit repair, it’s often best to hire professional help. Most working people simply don’t have the time or patience required to deal with contacting multiple lenders, collection agencies, and reporting bureaus.

Working with someone who has the experience and expertise to deal with credit issues is likely to bring you far better results.

Are You Ready for Fast Credit Repair?

If you have poor credit, now is the time to start making changes. Take time to research credit repair options and see which ones work best for you. Don’t suffer the consequences of poor credit any longer, take action.