1. Pull your credit report and check for errors.
The first step should always be to get a current credit report and review it line by line. Remember that there are three major credit bureaus and they each may report different information, so it might be a good idea to check all three. Look for errors on larger accounts first, length of history, payments reporting on time, and that your balances are accurate. Move your way down to the smaller stuff but leave no stone unturned.
2. Dispute the errors.
After this review, you’ll be able to highlight inaccuracies or items that are hurting you that can be addressed. Dispute each and every inaccuracy or error, no matter how big or small. You can do this through the credit bureaus online systems here:
It’s also a god idea to consult with us first to make sure it’s done right and see if our professional representation will help.
3. Pay down balances.
One of the major factors that used to compute your credit score is your ratio of debt to available balances. To achieve the best credit score, you’ll want to keep your debt to balance ratio around 30% or less on each of your revolving credit items (like credit cards.) You don’t have to pay them down to $0 and don’t close them, but paying down your balances will boost your score quickly.
4. Don’t necessarily close old accounts.
Like we mentioned above, closing old accounts can actually hurt your credit score in many cases. One of the other factors of credit scoring is the length of time or seasoning accounts have been open, and the older a credit line, the more it displays an established history. So don’t close down old accounts or your score may move backward.
5. Cluster your loan shopping.
Too many credit inquiries can hurt your credit score if they’re spread out over a long period of time, so when you’re shopping for the best rates on a loan, make sure to get all of your credit pulls done within a two-week period (approximately.) If pulls are clustered, the credit bureaus will know you’re shopping for good rates for the same loan, not trying to take out to extend yourself by taking out multiple new debts.
6. Apply for a credit line increase.
If you can’t pay down your balances to the proper ratio (around 30%,) think about applying for a credit line increase with your existing credit card accounts. You can do this easily just by calling your existing lender, usually without any paperwork or credit pulls. If they do increase it, your credit utilization ratio will be better (even with the same amount of debt,) and therefore your score will get a quick boost.
7. Consolidate.
Some times we have multiple credit cards or accounts with the same bank. Consolidating these into one account can help raise your credit score in certain circumstances – namely, if you can blend a newer account into an older account. That will help show longer term, seasoned debt and give your score a positive jump, but be careful to manage this one correctly because you also don’t want to throw your ratios out of whack.
8. Add accounts that aren’t showing up.
Many people don’t realize how many accounts can and should report on your credit, but don’t. You can request that certain paid accounts are added to your credit report. Of course only add accounts that were in good standing, but this can add well-seasoned positive credit lines that boost your score. Think about cell phone accounts, cable and internet accounts, utilities, and phone companies when making this request. They aren’t obligated to report, but they sometimes will if you request it politely and consistently.
9. Pay by the report date.
We always think about paying our bills on time before their due date, but another tactic to raise credit score is to pay them by the date that credit line reports to the bureaus. That will help show lower balances if you frequently use your accounts or credit lines. Call your creditors and ask what day of the month they report.
10. Remember that the law is on your side!
The credit bureaus have to follow the letter of the law when it comes to reporting your credit, so don't be afraid to escalate a complain if inaccuracies or errors aren't erased from your credit report. You can do this with your creditors, the credit bureaus themselves, and the Consumer Financial Protection Bureau if things get serious.
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