5 Simple Ways to Raise Your Credit Score (Without Spending A Dime!)
Your credit score is an essential part of how you live. It impacts everything from whether you can buy a home, a car, or even get a job! It’s almost a review of yourself to those that don’t know you.
So if you’re credit score isn’t the best what can you do to improve it quickly? Let’s take a look.
Get A Copy Of Your Credit Report
The first step in knowing what to do to repair your credit is to know where you stand right now. The three national credit reporting companies are Equifax, Experian and TransUnion. The law allows you to obtain a credit report for free every 12 months. The three companies have a central website through which you can obtain your free credit report, AnnualCreditReport.com. Request your credit report online from this site and you can receive it immediately.
Dispute Any Errors On Your Credit Report
Once you receive a copy of your report, review it carefully. Look for errors in your address, name, date of birth, and of course the charges.
If you find error on your report dispute it in writing to the credit reporting companies. Follow this sample letter as a template for your own letter. It’s helpful to include a copy of your report circling the points of dispute. Also send copies of any supporting documentation. Mail this “return receipt requested” since you will want to know when they receive your letter.
Additionally send a dispute letter to the information provider. This is the company that is reporting to the credit agencies. Follow this sample letter and again send copies of any supporting evidence along with “return receipt requested”.
The 3 credit agencies also have online dispute forms on their websites if you’d prefer. Remember that you will need to send your dispute notice to each credit bureau that shows an error.
Both the credit agencies and information provider must respond to your dispute. Once the report is updated or mistakes removed you will see an improvement in your score. Correcting errors on your report is critical to raise your credit score.
Pay All Your Bills On Time
Now that you are addressing your credit score, don’t mess it up by missing any payments. Resolve to spend within your limits any make all your payment in a timely manner. This is essential because anything else you do to improve your score won’t matter if you don’t pay your current bills on time.
Don’t Request An Increase In Your Credit Card Limit
Requesting a credit limit increase will impact your credit score at a time when you are trying to improve it. Every request will ding your credit score, since the credit card company will check with all the credit bureaus. This hurts your score.
Get A Secured Credit Card
Your goal is show a history of paying bills on time and the best way to do that if your credit is poor is to obtain a secured credit card. You will only be able to get a credit limit for the amount in the account you set up. Go to your bank to inquire about this. Make payments on time for this card. Also don’t spend up to the credit limit. Use up to around 25% of the card’s limit. If you continue to pay consistently for at least 6 months you’ll be surprised at the results. Many folks see that the same credit card company will offer them an unsecured card with a much larger credit limit after this time.
As you already know we’re moving into a cashless society and your credit history is your report card to the world. Give yourself the best advantage in obtaining a mortgage or job by improving your credit score.
Try these tips and let me know if they have been helpful!