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How to Quickly Fix Your Credit in 3 Months

As a licensed Realtor ™ I know how important your credit score is, so I am pleased to share today’s guest post with my readers –

Like many Americans, you’ve probably noticed that your credit score is a deciding factor in much of your life. Want a new job? Better have a good credit score. Looking for a better apartment? Not without stellar credit. Dreaming of a credit card with awesome rewards? Sorry, your credit is just too low.

Fortunately, quickly fixing your credit in three months is possible.

Pay off debt

Believe it or not, you credit score is partially determined by how much money you owe your creditors. A number, called your debt-to-credit ratio, is a big part of your credit score. If you owe $1,000 on a $5,000 credit card, your debt-to-credit ratio is 1000/5000 or 0.20. The closer your ratio gets to 1, the worse your credit will be.

Paying off as much debt as possible – even if you have to drain your savings temporarily to do so – is a great way to boost your credit score.

Similarly, if you have good enough credit to get a new credit card, or a credit limit increase, do so. Increasing your amount of available credit will lower your debt-to-credit ratio and can increase your credit score.

Remove errors

Next, order a copy of your credit report from all three credit bureaus (Equifax, TransUnion, and Experian). Once you’ve done so, comb through the reports to find any potential errors or omissions. Many Americans will find errors on their credit report and, unfortunately, these errors can have a negative impact on their credit score.

Fortunately, most errors are easy enough to fix. There are companies you can hire who will contact the credit bureaus directly to have these mistakes corrected. Although the companies can be pricey, it is definitely the easiest option to have the errors removed. Many credit repair companies will also teach you how to build credit once they’ve cleaned up your credit report, in a sort of two-for-one deal.

If you need to fix your credit quickly, you’ve got two options: The first is to improve your debt-to-credit ratio by paying off debt or increasing credit. The second is to remove errors from your credit report either through a credit repair company or by contacting each agency directly. Whichever you choose, you’ll be on your way to better credit in three months.

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