When you need a loan quickly, you may find this very difficult to achieve when hampered by a less-than-stellar credit score. When your credit falls into the poor or very poor range, this endeavor can become almost impossible. While you can work slowly to correct your credit score over time, if you need a much faster boost, there are a few approaches that rapidly yield results.
Make All Payments On Time
Your payment history is one of the largest factors that affects how quickly you rebuild your credit report. If you are placed on an automatic payment plan, you can ensure that you will never miss a payment and you will more quickly rebuild your credit through this method. If you take out any fast cash loans, it's important that you pay those back in a timely manner as well.
Remove Errors From Your Credit Report
Check your credit report carefully to make sure there are no errors. Sometimes, debts are recorded that aren't actually yours or that were actually paid. By disputing these errors, you will see an increase in your credit score. This can fortunately be done online.
Pay Off Delinquent Accounts
Begin paying the delinquent accounts that have not been charged off. While the late payments will still be on the account, these will be outweighed by the payments made on time, with time. The next step is to pay off the debt that has been charged off. While paying the debt off late will still have a negative impact on your credit score, those who see your credit history will see that you eventually paid off your debts.
Utilize The Right Amount Of Credit
Credit utilization is another critical aspect of your credit score. You will want to make sure that you do not get too close to your credit limit. Instead, obtain a credit card, make small purchases and pay them off at the end of the month. Not only will this look better on a credit report, but you will not have to pay interest. If you need to use the credit card frequently, but you have a low credit limit, you could make many smaller charges on your card and pay them off quickly. Then, whenever your credit balance is reported to a credit rating bureau, it will still be low.
Become An Authorized User
You may find it difficult to obtain a credit card. One option is to become an authorized user on someone else's credit card. While less weight is placed on authorized users than on the primary cardholder, this can still have a positive influence on your credit score. Each of these has a small impact, but they can all add up.