Raising your credit score can have huge financial rewards. If you are able to raise your score, you should have more borrowing options and qualify for a more affordable mortgage or other types of loans. Since landlords, employers, and utility companies also check your credit, your life will also be easier in many ways if you have a higher credit score.
So, how to boost yours and is it possible to do it quickly? The good news is that there are three quick and easy ways to improve your credit information.
1. Ask someone with good credit to make you an authorized user
Most credit card companies allow account holders to designate someone as an authorized user. Authorized Users have the right to use the Card to charge for purchases, but no obligation with respect to payments. When a person is designated as an authorized user, the credit card also appears on their credit file.
You can use this to your advantage if you’re trying to boost your credit score fast. You see, the credit scoring formula takes into account factors like the average age of your credit, the amount of credit used versus what’s available, and your payment history. If someone has had a card that’s been open for a while that they haven’t used a lot of available credit on and have always paid on time, having that card show up on your credit report could significantly boost your score. .
You probably want to ask this favor only from your family or close friends, but the reality is that the person who adds you as an authorized user never has to give you the card number of a physical card if they does not. want – so they can help you and help you increase your credit even without risking a lot of fees.
2. Write a goodwill letter asking creditors to remove negative information
Even a minor black mark on your credit report can have a big impact, especially if it’s a late payment. Unfortunately, sometimes people who are generally good enough to pay the bills can end up making mistakes and missing a payment or going over the limit.
If you have negative information on your credit report because of this type of error, it is worth asking your creditor if they are willing to help you. Sometimes writing a goodwill letter asking the creditor to remove the derogatory information will actually pay off for you, especially if you’ve otherwise been a good customer.
Now, card companies are no longer required to remove specific negative information. But if you ask, many will to keep you happy. It might take a few tries to find the right person, but it’s worth the effort because removing just one negative data point from your credit report could make a huge difference in your score.
3. Pay off your debt quickly
Owing a lot of money, relative to the credit you have, can also significantly lower your credit score. If you want to improve it, try to pay off your debt as soon as possible. If you can take on additional work and make significant additional payments, you may be able to have a noticeable impact on your credit utilization rate and increase your credit score.
By exploring any or all of these three simple steps, you can hopefully quickly improve your credit score so it can start opening doors for you.
The best credit card waives interest until 2023
If you have credit card debt, transferring it to this superior balance transfer card guarantees you an introductory APR of 0% in 2023! Plus, you won’t pay any annual fees. These are just a few of the reasons why our experts consider this card a top choice to help you control your debt. Read our full review for free and apply in just 2 minutes.
Read our free review
We are firm believers in the Golden Rule, which is why editorial opinions are our own and have not been previously reviewed, approved or endorsed by the advertisers included. The Ascent does not cover all offers on the market. The editorial content of The Ascent is separate from the editorial content of The Motley Fool and is created by a different team of analysts. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.