How to improve your credit score in 24 HOURS!
Changes on your credit accounts sometimes take 30-60 days to be reflected on your credit report. If you discover adverse history on your credit report during a loan application, you can correct the wrong information, then provide the lender with proof that you corrected the problem. If you paid down debt you can also provide proof of payment to the lender. Some lenders can run mock-up credit scenarios with the information you provide.
Another technique is Rapid Rescoring which costs about $25 to $30 per account to correct errors in 24 to 72 hours. Once you send in all the paperwork for the correction, it is forwarded to the credit bureaus and the corrections are made in less than 3 days. If you’re in a time crunch and don’t have months to fix an error, this is the fastest way to make corrections.
Which debt should you pay that would have the most impact on your credit score? Here are some examples to consider:
1. Paying off a $500 debt which has gone to collections can drop your FICO score from 615 to 580. Although the debt is old, when you make a payment, the collection date will be updated to the date you paid. It will appear as a recent debt, which causes a drop in your credit score. Some lenders may force you to pay off bad debts in order to get a loan, unfortunately, paying off those debts will drop your credit score.
2. Paying off a $300,000 mortgage loan will increase your FICO score from 680 to 685. Paying off large installment debts will have little impact on your credit score.
3. Paying off a $3000 credit card debt will increase your FICO score from 630 to 670. Paying off revolving debt has the most impact on your credit score. Even if it’s not a very large debt the revolving debt payoff would be the best route to go if you're trying to improve your credit score fast.
Generally, it takes consistency over time to build up your credit. It takes being persistent with paying all of your bills on time, managing your credit utilization ratio, and using a mix of credit types. Having someone add you as an authorized user on their credit cards is the fastest way to improve credit, with results showing in as little as two weeks. To get results this quickly, you have to make sure you are added to their account before the statement closing date, rather than the due date. The statement closing date is when the credit card reports your information to the credit bureaus, while the due date which is usually a few weeks after is when you have to make your payment to avoid late fees.
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