The credit rating determines which credit products can be available to us, and with what conditions. Although there are still many US citizens who have bad credit, it’s national average has grown over the past couple of years. This suggests that people who have experienced difficulties with a low credit score entails, are learning proper credit behavior and improving their credit. In some extremely advanced cases this credit recovery process may take several years, but if you have an average score, then you can improve your rate in just a month. Let’s see how this can be done in such a short time and what is needed for that. So how to improve credit rating in a short time?
Keep abreast of your credit events
Not all Americans know the state of their credit rating. They just use their credit cards as it turns out, not thinking much about how this affects their credit score. And then they suddenly face a refusal by the lender to give them a loan, or draconian interest rates. To prevent this from happening you should regularly monitor the status of your credit. Every US citizen is available once a year to receive a free credit report in one of the country’s credit bureaus. But this may not be enough. In order to track the status of the credit for free in nearly real time, there are different services. For example, Credit Karma or Credit Sesame provides an opportunity to improve credit rating in a short time almost every day. Moreover, these services will also offer you recommendations for improving it.
This is very convenient when you want to improve your credit and keep it high. Daily or weekly updates will not let you forget about some of your obligations, or miss some important event that will affect your credit report. Often US credit reports have mistakes that lower your score. This could be someone else’s late payment or a high balance not on your credit card. It happens, but it is in your power to challenge and correct such mistakes.
Do not allow the growth of credit utility ratio (CUR)
The credit utility ratio shows how much you usually use from the loans and credit lines you have open. If it exceeds 30% of the credit limit, then your credit score will decrease. To reduce CUR you can pay off a part of your credit card debt, and if you don’t have enough financial means to do this, you can use consolidation of your debts. Bringing the credit utility ratio to zero or at least below 30% will allow you to quickly increase your credit score.
Increase your credit rating by removing late payments from your report
Overdue payments have a negative effect on your credit. To remove them from your credit report, contact your lender, and he will probably want to meet you in this matter, since a loyal customer can make more profit.
Make a small expense for inactive credit cards
If you have several credit cards, then you probably do not use all of them regularly to avoid making debts on them, but inactive credit cards do not add points to your credit rating. Make small purchases with these cards in order not to increase your debt greatly and not to worsen the credit utilization rate. But at the same time make the cards active. By paying off a small debt, you will increase your credit score.
Request an increase in credit limit on credit cards
Increasing the credit limit reflects your creditor’s credibility, and the trust of all other lenders. In addition to this, with the same use of credit funds you improve your credit utilization rate, which also improves your borrower rating. To do this, every few months request an increase in the credit limit from your lender. If the debt was paid off on time and did not exceed 30% of the utilization rate, then the lender in most cases will not refuse you.
Do not open new loans without urgent need
Each tight credit check reduces your rating for a sufficiently long period, so when you apply for a new loan, you risk worsening your credit for up to 12 months. If you are not sure exactly what type of credit check the lender will conduct when reviewing your application, then you should not submit an application unless absolutely necessary. However, you can find these types of loans with different lenders who will not conduct a tight credit check. For example, on our website you will be able to submit an application that many lenders will consider at once, and we will be able to tell you which of them will conduct a hard or soft check of your credit. Our financial experts will help you determine the best loan option in your situation, depending on the goals you are pursuing.
Stay alert and follow simple steps to improve credit rating in a short time
Controlling your credit rating will allow you to not lose sight of important things, and following the simple rules outlined here will help you improve your credit rating quickly enough.This will significantly increase your future financial opportunities and you can count on different types of loans and on good conditions for them.
To solve any problems with the repayment of old debts, you may need a loan with no credit check. Do not wait for later, apply now, using the form on our website.