4 Ways to Raise Your Credit Score Fast
With interest rates at all-time lows, many home owners are refinancing their mortgage. In order to get the most favorable lending terms possible, you likely want to have the highest possible credit score. Below are 4 ways to raise your credit score quickly.
- Lower Your Utilization Rate
Your utilization rate is your card balance divided by your credit limit. You can lower this rate by (1) asking for a higher limit or (2) paying off your balance twice a month. Typically, utilization rates below 20% are great. So, if you run up a balance of $4,000/month, you want at least a $20,000 limit.
- Open a new credit line
If you are unable to get a higher credit limit, consider adding another line. However, be careful here – opening up a card or multiple cards can temporarily reduce your credit score.
- Connect Utility and Cell Phone Payments
Some credit reporting agencies, like Experian, allow you to link your bank account to identify on time payments of utility and cell phone payments, which can increase your score.
- Dispute inaccuracies
You might be surprised how often credit reports have inaccuracies. Request your report from all three agencies (Experian, TransUnion, and Equifax) and double-check that there are not any negative errors.
Disclaimer: Alex Voorhees and Reston Wealth Management do not provide legal, accounting or tax advice. This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified investment, tax or legal advisor. The opinions voiced in this article are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) or strategies may be appropriate for you, consult your financial advisor prior to investing. No strategy assures success or protects against loss. You should consider the investment objectives, risks, charges and expenses of any investment carefully before investing.