How Long Does It Take to Raise Your Credit Score? The Facts

It is a very clear fact that one cannot improve his or her FICO credit score overnight. Raising a FICO score can take anywhere from a month to six months depending on the severity of the debt issues. Do you know that a bad credit can stay on a credit report for an average of seven years?

The duration for the negative marks to stay on a report is much dependable on the statute of limitations in your state and the types of transaction involved. In contrast, the duration for positive credit to stay on a report is indefinite or as long as an account remains opened.

Since you know that there is no short cut to increase your credit rating in a short period, there is still ways to speed up the process. Here are FIVE simple ways that you can take to improve your credit score:

First Approach: Make sure you pay your bills on time every month
You must bear in mind that if you are delinquent when paying your monthly bills such as utility bills and phone bills, your credit score can be negatively impacted. As a result, paying your bills on time each month is the key to increase your score.

Second Approach: Making payment for all your debts on time
If you have both secured and unsecured debts, it is your responsibility to pay off all your debts before the due dates every month. During financial crisis, many people are not able to repay their debts on time. You are advised to contact your creditors if you are having financial difficulties. Try to discuss with your creditors to see if they can reduce the minimum amount due each month. You have to put your effort in this to avoid spoiling your credit rating.

Third Approach: Try to avoid balance transfer
If you are having the intention to raise your credit score within a short period, make sure you avoid doing balance transfer from one card to another. Although the zero percent interest balance transfer may be good for you but it is not the right time to open new account. You have to keep in mind that opening and closing too many accounts will have negative impact on your credit score. As a result, you are advised to concentrate on paying your current debt.

Fourth Approach: Keep your unused credit card accounts opened
In the process of increasing credit score, please do not close your unused credit card accounts as this can lower your FICO score. Keep them opened but make sure you monitor them closely. You must report immediately if there is any inaccurate information in your credit report that does not belong to you.

Fifth Approach: Try your best to keep your outstanding balances low
Are you aware that the FICO score will be reduced when your available credit declines? It is ideal if you always keep your available credit at around 60%. In order to achieve this, you must try hard to keep your outstanding balances as low as possible. If you are able to do so, you can prove to the credit reporting agencies that you can manage your debt responsibly.

Although raising a FICO score is a process that takes time, it is well worth the effort as you are able to improve your personal finances and enhance your money management.