Credit restoration can take time. But there are also a few steps you can take to increase your credit scores fast. As one of the leading credit restoration providers since 1989, Sky Blue generally focuses on strategic disputes and long-term rebuilding, but depending on your credit profile, we may also identify some opportunities for quick results.
Pay Down Your Revolving Debt
The FICO scoring model places significant weight on the relationship between your revolving balances and your account limits. The ideal balance is below 20 percent of your limit. Don’t underestimate the importance of this credit restoration strategy, it could be worth more than you imagine. Depending on the overall content of your report your credit card balances have the ability to swing your score by as much as 150 points.
Pay Off Your Store Cards
Store cards and consumer debt, like furniture store loans, are in a unique category. The FICO scoring model discriminates against this type of debt. It is best to eliminate it altogether if you have the means. There are certain financial benefits that may come with consumer debt (like purchase discounts and delayed payments), so this is not a warning to avoid it altogether, but if you will be applying for a significant purchase in the near future, be aware of the negative score impact.
Become an Authorized User
If you have a friend or relative with excellent credit ask them to add you to one or two of their credit cards as an “authorized user”. This is an easy credit repair task. Just have them call the card issuer and say they want you to have a card “in case of an emergency”. It is important that the card have a perfect payment history, a low balance relative to the limit, and be at least two years old. The account will show on your credit report within 60 days and you will inherit the score benefit of the card.
Mortgage Applicants Try a Rapid Rescore
Both balance reductions and authorized user cards can take up to 60 days to show up on your credit report, so if you need to get your credit score up you need to plan in advance. If you are applying for a mortgage and are only able to pay down your credit card balances at the last minute, don’t worry! Mortgage brokers offer a quick score update product called a “Rapid Rescore”. If you provide a letter from your credit card issuers indicating your new reduced balance your mortgage broker can have the bureaus adjust your score within four days.
If you need to increase your credit scores in a hurry please feel free to call us. Many of the credit restoration strategies that we suggest to our clients are time-based, but we will also identify every opportunity for a quick score boost.