Best Answer: These are the best and fast way to improve your score. I use and give these tips to my customers where I work in order to get loans, mortgages, etc approved. 12 months is what it takes
Source(s): 1.Accuracy is the first thing to address and the fastest way to boost your score. Find and fix any mistakes that could be pulling your score down. Your credit score is based on the information contained in your credit reports. "For someone who has never seen a credit report or hasn't checked in several years, I recommend getting all three and looking at all of them, because each contains different information. For those who check regularly, use the free credit reports to monitor your accounts. Stagger your requests for the free reports so you see one every four months. "With ID theft running rampant, it seems like you need to check more often these days,Maybe once a year isn't enough anymore
2.Paying on time helps build a healthy payment history. And, as the largest factor in determining your credit score (at 35 percent), it's the best way to rebuild damaged credit. Even if you've had credit problems in the past, depending on how many creditors were involved and how far past due your accounts were, a good 12-month payment history can usually produce noticeable results.
3.If you think you're doing everything right, take a look at the amount of your outstanding debt and your debt-to-credit ratio. Reducing your credit card balances will score you points and is especially important if you are flirting with the limit on any of your cards. You never want to be maxed out, and ideally you'll be using only about 40 percent of your limit on any one card. Spreading debt between cards is better for your credit score than keeping it all in one place
4.Fifteen percent of your score is determined by
the length of time you've held a credit relationship. Don't close any accounts if you plan to shop for a mortgage or other loan for which you'll need a good score. Opening new cards and closing old accounts negatively impact your credit score in the short run, so avoid making these moves shortly before applying for a large loan. Deciding when to close an account is a tough question "It depends on the overall mix of credit and how many accounts you close. I would stagger it out. Put as much time between those events as possible, because it will affect financing terms. While you'll want to have a couple of cards to develop a credit history, adding more credit card debt can be a dangerous thing.Limit the amount you get and keep balances low and pay them off quickly. It's not necessary to have more than a couple of credit cards, and be careful using them because life circumstances can change Of equal importance is establishing a savings account to fall back upon.
5.When you apply for a loan or a credit card, lenders check your credit. These inquiries can put a temporary dent in your credit score. Start your loan search by shopping and comparing rates rather than applying for a loan first and deciding later. If you can do all your shopping within the same month, all the better. Mortgage and auto loans are counted as one inquiry if they fall within a 45-day period in the FICO scoring model. Inquiries have the least impact as far as overall weight. Inquiries, types of credit and the number of loans you have play into the remaining amount of your score.
I'm always amazed at how people tend to concern themselves with someone making an inquiry when they should be focusing on their payment history,I think if you want to stop solicitations, opt out.
alicia c · 8 years ago