While long-term credit repair doesn’t happen overnight, you might be asking how can I raise my credit score in 30 days?
In this post, we cover:
1. Check your credit report
Don’t go in blind. The more you know about how to increase your credit score fast the better you’ll be able to tackle issues.
- Access your credit report online: You are entitled to one free credit report from TransUnion Canada and Equifax Canada each year. However, these reports are usually shipped via snail mail and can take weeks to arrive. You can access your credit report online for a minimal fee.
- Identify negative accounts: Your credit report offers a detailed history of every account you’ve ever opened. Find the ones that are causing the most damage.
- Pay to see your score: You might need to pay extra to see your actual credit score in addition to your credit report.Take the hit and find out what your score is with both bureaus.
2. Correct any errors
Filing a dispute with the credit bureaus can have a big impact on your credit score.
- Personal information: Incorrect personal information can lead to someone else’s bad credit showing up on your account.
- Credit inquiries: Hard inquiries into your credit history can lower your score by several points. Make sure all of the inquiries listed on your report are accurate.
- Negative account information: If you have a valid reason (and proof) for missed or late payments you might be able to get the marks removed from your account. You can also file a dispute with the original creditor.
3. Pay off outstanding balances
No overdue balance is a good balance, but you can be strategic about how you pay them off.
- Credit card balances first: Credit card debt is easy to rack up and difficult to pay off because of high interest rates. Tackle these balances first to reduce your debt-to-income ratio.
- Late payments: The longer a balance is overdue, the more it hurts your credit score. Settle up late payments that haven’t been sent to collections yet.
- Contact collections: If you do have a debt that has gone to a collections agency call them and offer to pay for a delete. That means you’ll pay the outstanding balance as long as they remove the delinquent account from your credit report.
4. Raise your credit limit
If you don’t have the cash to pay off your debts, raising your credit limit will help improve your credit score.
- Smart credit utilization: The closer your balance is to your credit limit, the higher your credit utilization — and the lower your credit score. Keep your balances low to reap the rewards of a higher limit.
- Take the offers: If your credit card company offers you a credit limit raise take it. But, don’t go on a spending spree just because you have more money available to you.
5. Become an authorized user
Make someone else’s good credit work in your favour.
- Choose someone with good credit: Find a friend or family member with good credit and ask if they will add you to their credit card as an authorized user. This joint information will show up on both your credit reports and raise your standing.
- How to get authorized: The original borrower will have to contact their bank to have you added to their account.
How to raise your credit score fast
Sometimes it’s not possible to wait for your credit score to improve before buying a new vehicle. By checking your credit report, disputing errors, paying off outstanding balances, raising your credit limit and becoming an authorized user you could see your credit score jump a few points in as little as a month.
Significant credit repair takes time, but even minimal improvements can lower your interest payments and increase your chance of getting approved. It’s important to be diligent and avoid making more mistakes while you’re trying to improve your credit score.
Birchwood Credit Solutions specializes in bad credit car loans, which means you don’t need a perfect score to get approved for vehicle financing with us. Fill out an online application today or visit one of our three Winnipeg locations to check out our extensive vehicle inventory.