5 Ways to Rebuild Your Credit Fast
When your credit takes a hit, you want it to go back up as quickly as possible. Keeping on top of your credit will help you keep that number up in the long run. There are things you can do to help raise your score now such as buying tradelines for sale for a quick credit score boost. A credit score is not a stationary thing, it is constantly moving as you use credit and modify your everyday practices. There are some simple things you can do on a consistent basis that will help rebuild your credit fast.
Here are five tips on how to rebuild your credit fast:
• Pay your bills before due – This seems like a simple concept that gets away from many of us. We forget to pay, or cannot afford our bills due to loss of income or emergencies. But if you are following your credit score wisely, then this should be a big concern for you. Experts say that this element is the most important as it represents thirty five percent of your credit score. That is a big chunk for something we forget too often.
There is no reason to procrastinate if you can afford to pay your bills. Set up automatic payments if possible. If you cannot afford your bills, consider lowering them. For example, if you are paying too much for your cell phone or cable, consider lowering or switching your plan. You also do not want to pay a late fee and waste money either.
• Have savings or an emergency fund – We often think saving money is difficult, but you can save as little as ten dollars, and it can go far. Establishing savings and consistently contributing to it will help prevent a major hit to your credit. If something happens, like your car needing to be fixed or damage that occurred to your home, would you rather take money from an emergency fund already established or put the repair payment on your credit card hoping that someday you can pay it off?
Placing those large charges on your credit cards will leave you in debt that will be difficult to get out of. It can lead to you not paying off the full balance of your credit card, or even eventually going into default if you cannot pay. Having a fund like this prevents the decline of your credit score. Then you just continue to build it back up.
Remember – Your first monthly expense should be a saving!
• Pay down your debt – The best thing you can do to rebuild your credit fast is to pay down the debt you currently have. This includes credit cards, student loans, personal loans, mortgages, and more. Opening more lines of credit will not help. If you were already spending more than you can afford, more credit is not the answer.
You do not need to pay off all of your debt at once. Make sure you are paying the minimum payments on all of your debts. Then you can choose one to focus on – perhaps the lowest balance or the highest interest rate – and contribute extra money each month to get those paid off first. Then do the same for the next.
• Keep an eye on your credit report – Your credit report is legally required to be fair and accurate. You can view your credit reports for free once a year. If you find any inaccuracies, you can contest them to the reporting agencies or the creditor themselves. If these are removed, then your scores will increase. You can do this yourself or hire Las Vegas Credit Repair for example to check and fight inconsistencies for you.
• Get a secured credit card – For those who do not know, a secured credit card requires a security deposit, reassuring the creditor that they will get their money back from you. This is better than opening a new line of credit because your limit is already paid for. You can use these cards just like regular credit cards, and pay them off every month. This limits your line of credit, and if you cannot pay, it comes out of the deposit and the card is cancelled. Once you prove yourself, the security deposit is lifted and you can get a higher limit. This also shows the credit reporting companies that you are responsible with your credit.