Consumers often find themselves in a time crunch. For example, if a car breaks down, you might need to get a replacement vehicle as soon as possible. However, a poor credit history can affect your ability to be readily approved for a car or home loan and with the market changing, you might feel the time to buy is now. While credit repair does not happen overnight, there are ways to avoid delays in credit report corrections and help you raise your credit score more quickly if you have your sights set on a new card or other lines of credit in the near future.
Here are ways to make sure you can fix your credit as quickly as you can:
Have All Documentation and Records Ready for Disputes
Before contacting creditors about mistakes you may have spotted on your credit report, you should make sure that you are prepared with the right documentation. Creditors might ask for copies of information, such as a credit card statement, for you to send along with a letter disputing mistakes on your credit report. A messy stack of papers is harder to go through than an organized pile so making sure you know where all your records are kept will help speed up the credit repair process.
Lower Your Credit Utilization Rate
When you have too large a balance on your credit cards or are constantly overcharging every month, you might have a high credit card utilization rate. Defined as your total balance divided by the credit card limit, credit utilization rate is a big factor in determining your credit worthiness. Make sure you pay down your credit cards to keep your balance and credit utilization rate low.
Get Rid of Debt and Stay On Track with Payments
Excess debt might be weighing you and preventing you from the credit score you want. Be sure to pay off debt as soon as you can and avoid missed or late payments that could drag your score even lower. To ensure you are on track with payments, consider setting automated payments to withdraw from your account directly on or before the due date. You can also request a payment schedule from a creditor for existing debts to make payments more manageable.
While there is no instant fix for credit repair, these tips can help speed up the journey to better credit.