How To Improve Your Credit Score Fast

Many people wonder how to improve your credit score fast because credit is important to everyone. Your credit score impacts your ability to finance your education, your home, a vehicle, and may even affect a job application or an insurance quote. While there's no magic formula to make the score jump hundreds of points overnight, there are some things you can do to make it change in your favor within a few months. Since companies report to the credit bureaus once every two months, it will take at least this long to see a significant improvement in the score.

1. Check your credit report. One of the most important ways you can improve your credit score fast is by taking a closer look at what's on the report. Everyone is entitled to a free copy of their report from all three bureaus once a year. Go to AnnualCreditReport.com to obtain a report completely free of charge, without having to enter any financial information. Other sites give you a report for free if you sign up for a free trial of their credit monitoring service. Look at all three reports to verify the information and see which accounts are being reported to which bureau. If any information is incorrect, report it immediately. If you want to see the FICO score, you will have to pay for it.
2. Stop charging on your credit cards. Part of your credit rating is determined by the overall balance of your debt compared to your available credit limit. If you have credit but it is close to maxed out, you are going to have a lower score than if you have the majority of your available limit open. To keep your balance under control, stop charging on the card for a month or two and focus on paying the balance down.
3. Stop trying to open new accounts. Every time you open an new account, it is noted on your account. To keep you from getting too much credit for your income, the credit bureaus lower your score each time you apply for a new account. Shopping for credit will look bad to the creditors, but there is nothing wrong with allowing a few creditors to check your credit for the same purpose, such as a mortgage or auto loan, to see who can give you the best deal--so long as the inquiries are within a reasonable amount of time together.
4. Check for accounts in collections. If there are any accounts on your report in collections, these are killing your credit score. Make the necessary arrangements to get these accounts settled as quickly as possible. Call the collection agency rather than the original creditor
5. Don't close any accounts. Though it may seem like closing accounts you don't use anymore is a good idea, part of your score is calculated based on how long you've had credit. Closing old accounts can actually reduce your credit score in the short term, so this is something to avoid.