Your credit score might have taken a hit due to an overdue balance, collection amount, high credit card balance, or by some other reasons. All these might make you wonder “how to fix my credit score in 6 months?”. Well, the good news is you can fix your credit score easily and you don’t need to get hold of a costly credit repair company for that. You can easily boost your credit score by using several types of inexpensive and easy strategies. Here in this article, we will be guiding you with some easy steps by which you can fix your credit score in six months.
How To Fix My Credit Score In 6 Months? Calculating Your Credit
There are several factors that might influence your overall credit score. The first and foremost thing that you need to do is to identify all that may have had negative impact before actually focusing on improving your score. Here are some of the very common reasons that are likely to negatively impact your credit score.
- Late payments.
- Missed payments.
- No credit history.
- Using more than thirty percent of the overall credit limit.
- Closing down one credit account.
- Applying for different credit lines in a short time period.
- Inaccuracies in bank accounts.
- Declaring bankruptcy.
Best Ways To Fix Credit Score On Time
Here we have listed some of the best ways by which you can fix your credit score in just six months.
- Paying Credit Bill On-Time: Remember timely payment of your credit card bills is the main key to your question of how to fix my credit score in six months. You really don’t need to pay off the whole amount, but all you need to do is to clear off the minimum due payment. Remember even one late payment might affect your overall credit score.
- Try Balancing Your Overall Credit Portfolio: Another great way to inch your overall credit score is by managing all your accounts thoughtfully. All these include limiting consumer credit accounts such as store lines of credit, credit cards, store cards etc. Most of the credit bureaus out there generally lookout for a nicely balanced credit history comprising of things such as car loans, mortgages, consumer debt, and student loans. One of the most common mistakes made by our fellow Americans is by opening a large number of consumer accounts. In case you also have the same, try closing the ones that aren’t in use.
- Start Reviewing Your Credit History Length: Most of the credit agencies out there, love to see those accounts that are open for an extended time period and are responsibly managed since their inception. Now you can easily see the performance of your accounts by getting a copy of your credit report. This can be of great help in improving your score by easy elimination of your recent accounts. Remember to only close those accounts that are open for only a few years and don’t forget to keep those accounts that have the longest credit history.
- Try Minimizing All Your Hard Inquiries: Every time you apply for a new credit line, remember that your credit report is being pulled. This is termed as hard inquiry and it hurts your credit scor If your actual goal is to see progress in your credit score, try minimizing or even eliminating your habit for applying new credit cards. It is always a good idea to stop applying for lines of credit or store cards. Each time you are doing so, it directly hits your credit score.
- Improving Debt Ratio: Almost all the credit agencies in the United States prefer seeing consumers with a credit utilization ratio that is less than thirty percent. Remember your credit utilization ratio is the total of all your previous outstanding debt and it is calculated as a percentage of all your combined credit limit. The fastest way to raise your credit score is by keeping your overall credit utilization low. In order to boost your credit score, try reducing credit card debts.
- Improve Your Credit Utilization Ratio By Asking For Credit Limit Increase: In case you aren’t having the financial ability to pay off your credit card debts in order to keep it under a thirty percent ratio then all isn’t lost. Another great way is to ask for an increase in the credit limit. An increase in the overall credit limit can be of great help in getting a high credit score.
- Try Using Only One Credit Card Responsibly Every Month: Using only one credit card every month is a tried and tested method used by several consumers all across the globe. Try selecting only one card and use it for all the expenses that you would typically pay with cash or debit card. Furthermore, make sure to pay off that one card every month. In order to improve your score, you need to have something that’s being reported every month and this procedure can happen anytime especially if you are having a balance on your account. With the help of this method, some activity is getting reported to the credit companies.
- While Paying Off Credit Debts- Consider Doing It In 2 Steps: While you are paying off your credit card debts, try doing it strategically in order to get better improvement in your credit history. Try paying your credit card debts first to a low balance and then in the following month pay them off in full. The basic reason to do so is that most credit card companies won’t be reflecting a paid-off account for a few months.
Another great way to answer the question of how to fix my credit score in six months is by making use of utility bills or home rents. We at Credit Rent Boost work with homeowners and tenants by reporting their rent payments to established credit bureaus like TransUnion or Equifax. With us, you can remain assured about complete confidentiality and great performance. If you have any further questions regarding our services or credit check, don’t forget to visit our website.
