If your FICO score is keeping you from qualify for a mortgage or line of credit at all, here are five things you can do to increase your score fast:
1. Dispute errors.
According to the Federal Trade Commission, as many as 25% of credit reports contain errors. These errors can lower your FICO score, sometimes significantly, so check your credit report and dispute any information that is inaccurate or out of date. There are three main credit reporting agencies (Experian, Equifax, and TransUnion), and you can dispute errors on each of their websites.
2. Establish credit.
If your low FICO score is the result of not having enough credit established, apply for a credit card. Buy a few things regularly, then pay the balance off every month. This will help you establish a good history of paying your bills on time and help you increase your FICO score fast.
3. Pay everything on time.
One late payment can cause a drop of over 50 points on your credit score, so it’s crucial you pay every payment on time if you want to increase your FICO score fast. Auto bill pay and email reminders can help you. Remember, making on-time minimum payments is better than making larger payments if those payments are late.
4. Bring accounts current. Late payments are divided into three categories: 30-day, 60-day, and 90-day. The longer your accounts are past due, the more damage they cause to your credit. Work to bring your accounts current as soon as possible. Not only will this help improve your score, but it will keep accounts from going into collections.
5. Keep accounts open.
You may be tempted to close old accounts you’re no longer using if you’re looking to increase your FICO score fast, but this can actually damage your credit score in a couple of ways. First, it lowers the amount of available credit you have, which can negatively impact your FICO score. Secondly, if the account is one of your oldest accounts, it can lower your length of credit history–which can also have a negative effect on your credit score.
These fixes can make an impact on your score quickly, but the most important thing to remember when trying to increase your FICO score is to be patient. If you’re trying to raise your score to buy a home, call one of NLC Loans’ personal mortgage advisors toll-free today at 1-877-480-8050. They can help you find a loan that fits your credit score and give you other tips on how to increase your credit score and improve your chances of getting approved for a mortgage.
Additionally, you may attempt to repair your credit through a credit repair agency, who will work on your behalf to remove negative entries from your credit report and help you increase your FICO score.