Your credit score represents how responsible you are financially, and it's used as an indicator of your credit-worthiness to lenders, landlords and even some employers. To boost your credit score quickly, you need to pay attention to the factors that the credit bureaus use in calculating your score and then improve on your current standing. To make the most of your credit score, focus on paying your bills on time all the time, since it's the biggest factor in your score.
Credit Report
One of the fastest ways to improve your credit score is to clear up any errors that you may find on your credit report. You may order one free copy of your credit report from each of the three major credit bureaus each year through the Annual Credit Report website. If you find any discrepancies on your credit report, you should report them by writing to both your creditor and the reporting credit bureau. Also include copies of any supporting documentation you may have available. The consumer reporting company must investigate your situation unless it is deemed frivolous. Investigations usually occur within 30 days, and the company must report its findings to the credit bureaus.
Pay Down Balances
Roughly one third of your credit score is based on the amount of debt you're carrying in relationship to the amount of credit you have available, termed your debt utilization ratio. Ideally, you should carry balances of no more than 25 percent of your total available credit, according to the Better Business Bureau. According to Bankrate writer Leslie McFadden, lenders usually report to credit bureaus on a monthly basis, so your payments will be reflected within one to two months.
Use an Old Card
The length of your credit history accounts for 15 percent of your credit score, so it's important to keep your oldest cards active by using them lightly. Banks may stop updating the credit bureaus on any accounts that you stop using, and, although they will still show up on your report, they won't weigh as heavily as active accounts. Pay off purchases on these cards in full each month to keep your debt utilization low.
Get an Installment Loan
Your credit score is used to determine whether or not you can manage your debt responsibly, and that includes both revolving and installment credit. According to MSN Money writer Liz Pulliam Weston, showing you're responsible with both types of credit will give you the fastest improvement in your credit scores. For those who don't have any installment loans, getting a small personal loan that you can pay back over time may be a wise credit move.
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