Do you have a rough and rocky credit history? If so, you will be happy to know that youre not alone. Many others have gone down the exact same path, putting them in a deep, dark hole of debt that seems almost impossible to climb out of. It can be a scary situation to be in, making you wonder if there is ever a light at the end of the tunnel.
Heres the deal – you cant stop life from happening, no matter how bad it gets. The good news is that you can turn the tables around in your favor and get your credit back to where you want it to be. With a little bit of work and a few simple tricks, you will finally start to see the light.
Boost Your Score with These Quick Fixes
Right now, you are going to discover 4 quick and easy credit “tweaks†that will help you boost your score almost instantly. Try just one or use them all and see how much of an impact it will make on your overall score today!
#1 Lower Utilization Ratio by Paying Down Debt
One of the things that factors heavily into your credit score is your utilization ratio. Your utilization is determined by the balance you have on your card in relation to the total credit limit. Ideally, you should strive to carry a balance that is no more than 30% of your credit limit.
For example, if you have a credit limit of $500, your balance should never exceed $150 at any given time. If you choose to exceed that amount, your credit score will slowly start to dwindle.
To help boost your score, get all of your credit cards under a 30% utilization ratio. If you carry multiple cards, lowering the balance on just one of them may be enough to bump your score up a notch or two. Keep your balances even lower than the 30% ratio and you will be rewarded with an even higher credit score!
#2 Negotiate With Collectors to Erase Negative History
If there is anything that can lower your score at the drop of a hat, its a collection account showing up on your report. These derogatory accounts are the worst possible entries you can have on your credit report. The more collections you have, the harder (and longer) the road to redemption will be.
Fortunately, there is a legitimate way to eliminate these unfavorable marks on your credit report. All you have to do is call up the debt collection company and ask them if they will accept a “pay for delete†deal. With this arrangement, the debt collector agrees to eliminate the negative account from your credit report in exchange for a payoff on the account. Everyone wins!
If you decide to go this route, make sure you have an agreement in writing from the debt collection agency before you go through with anything. It would also be wise to ask for a letter of clearance from the agency as well. All you have to do is forward that letter to all credit bureaus and the negative mark will be removed from your report.
#3 Increase Your Limit
Looking for a way to quickly boost your credit score with the least amount of effort? Just call up your credit card company and ask them to raise your credit limit. If you have a decent track record and have made timely payments month after month, there is a high probability that your credit card company will bump up your limit.
Increasing your credit limit boosts your score because it raises the amount of available credit you have. This ultimately lowers your utilization ratio, which helps drive up your score. The bigger the amount of unused credit you have available to you, the better.
Remember the potential for a higher credit limit is only a quick phone call away, so dont be afraid to ask for it!
#4 Dispute Old Negative Items
Have you noticed any old negative entries on your credit report that shouldnt be there? If so, now would be a good time to dispute those items to get them removed. The process is simple and painless, making it a great way to quickly eliminate any old negative items on your report. The more items you manage to erase, the bigger the benefit it will have on your credit score.
Another quick tip: If you notice any items on your credit report that are unfamiliar, you can also dispute these items to get investigated for removal. Its best to do this immediately, as you dont want any debt youre not responsible for to show up on your report.
Sam Jones, the author, has been looking at credit cards for bad credit history on uSwitch.com to try and work out the best ways to manage debt issues.
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