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The first thing you need to do is check your current credit report and history for any errors -- things like available credit limits or payment history. Any mistake will hurt your score, so getting credit report errors corrected is essential. The credit bureau will investigate the error usually within 30 days. The entire process of correcting errors, thus improving your credit score, can take 30-90 days. You can order your credit report from TransUnion, Equifax, or Experian.
Don't overuse your credit card. In fact, don't even approach anywhere close to your credit card limit. If it appears you are maxing out your credit card -- for example, your limit is $10,000 and you owe $9,800 -- your credit score will reflect that. Create some breathing room by limiting your debt ratio to no higher than 80 percent, with as low as 30 percent being most
ideal. This can increase your credit score almost instantly.
Having excess debt is not viewed in a favorable light. Banks are wary of lending to consumers with too much debt. If you have little or no debt, your disposable income can be used to pay for the mortgage you want. Lower your outstanding balance to reflect judicious credit management. The effect on your credit score can be seen in about 30 days, equivalent to one billing cycle.
Pay On Time
Paying your bills late will hurt your score the most, therefore always make your payments on time. Bill payment history makes up 35 percent of your credit score. A credit complaint to a collection agency will take up to seven years to come off your report, but your credit score will go up with each timely payment you make. Obtain your credit scores after a few months to verify the increase.