How to Increase Your Credit Score Within 8 Months
- 1). Get a copy of your credit report. Under the federal Fair Credit Reporting Act, you're allowed to check your credit report from the three nationwide reporting agencies--Experian, Equifax and TransUnion--once a year. The only authorized site to do this is annualcreditreport.com. This check should be free.
- 2). Check to see if there are mistakes on your credit report. If there are, call the credit agency and dispute the charges immediately. There are several reasons that the claim might be in error, including incorrect purchase amounts, bills already paid, identity theft or illegitimate charges.
- 3). Make sure that you always pay your bills on time. A single late payment can substantially lower your score, although most creditors don't report a late payment until after it is 30 days past due.
- 4). Consolidate and lower your debt. The amount of available credit is one of the most important factors for determining your credit score, so paying down your debt will help improve your score. In addition, consolidating your debt into a single payment will help improve your score by giving you a single payment instead of several. You can also lower your interest rate this way by putting everything onto the low-interest card. However, don't close the accounts that you have consolidated; just don't use the cards. Having more credit available is good for your score.
- 5). Don't max out your credit cards. This reduces the amount of credit you have available and also makes it appear that you may be having financial difficulties. Keep your card about 25 percent below your maximum credit line.