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Erasing bad credit

Do you need money ASAP, but worry your credit score might scare away lenders? Then you need to find quick ways to improve your credit score.

How to Raise My Credit Score

Discipline and planning are the best ways to build credit. Here are some simple ways to improve your credit score:

1. Check Your Credit Report for Errors

The first step to improving your credit is to request your credit report. Once you have a copy, check it thoroughly for errors. Anything listed incorrectly can hurt your credit -- which means you may be able to improve your score by simply disputing the errors in your report!

2. Pay Down Your Debt

Reduce the total amount of debt you owe. Seriously, try to pay off whatever debts you can, or take as big a chunk out of them as possible. By clearing even one debt, you'll see your credit score improve. And always, always pay all your bills by the due date.

You can begin by targeting your largest debt. Put all your extra money each month toward paying well above the minimum payment. Cut back in other areas, too, such as entertainment and dining out, to give you more significant chunks of money to put toward debt payments.

When you focus on getting the debt paid off, you may be surprised by how quickly you can accomplish it.

3. Get a Credit Card

If you're the type of person who lives in fear of credit cards, you're missing out on a great opportunity to improve your credit score. You don't have to use your card for big expenses, either. Simply use your credit card for buying groceries or filling up your car, and then pay that off immediately. The constant use of a credit card does wonders for your credit score.

4. Pay Your Credit Cards Off Twice a Month

Even if you successfully pay your balance at the end of every month, creditors are still only reporting it once a month. If you break up your credit card payments, not only will you keep your total balance lower, but the doubled-up reporting will speed along your credit score improvement!

5. Negotiate Your Balances

Sometimes, you need a little help. If you have past debt collections that continue to be held against you, it may be time to request a negotiation to knock out some of your debt. Settling is in the best interest of both sides if you can move on and put the mistake behind you.

When you decide to negotiate, request any agreement you reach in writing. That way, you can reference it if a dispute arises or someone tries to renege on the deal.

If you have not done this before, seek out someone who has. You can learn tips for getting what you want from the negotiations and learn how staying organized and knowing your credit history can improve your negotiating power.

6. Pay Your Bills on Time

Credit ratings measure your reliability, and one way to prove you are reliable is to pay your bills on time. Yes, sometimes you forget to make a payment or a bill gets lost in the mail. But most of the time, you should be capable of making on-time payments. If you have experienced difficulty with this in the past, try these strategies:

  • Set a reminder on your calendar to pay each bill every month. Ping yourself a few days before the bill is due so your payment has plenty of time to arrive.
  • Arrange for online bill payment. Automate the service if you know you will have enough in your account each month to cover the payment.
  • Go over your budget each month to ensure you have every payment listed.

7. Become an Authorized User on Someone Else's Credit Card

If your credit is extremely low, becoming an authorized user on someone else's credit card could help you bounce back up. It's a risk-free strategy, assuming you can find someone who will agree to add your name. You won't be responsible for debt repayment and you can begin to rebuild a positive credit history.

Asking someone to make you an authorized user is not a trivial request. You should only ask someone you are very close to, such as a spouse or parent. The person who adds you is taking on their own risk. Make sure you show them the proper appreciation and respect.

Now that you know the right strategies for how to build credit, you can begin to implement them. It will take some time to raise your rating.

But remember, if your credit score is so low that banks and other lenders totally ignore you when you apply for a loan, you should try a personal loan from Atlas Credit. Our quick and easy approval process will get you $100 to $1,400 cash guaranteed, even if you have bad credit. Contact us today to find out more about our 5 to 12 month repayment plans!

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