When you want to fix your credit score, you might have a timeline in mind. Some people want to fix their credit in 6 months, but how can they do that? Your financial future is often difficult to impact in such a short time, but starting now is the best way to enjoy greater financial freedom in the future.
Remember, however, no tried-and-true way exists to automatically fix your credit score in 6 months, but you can take a number of simple steps that will have positive effects. Plus, you can continue using these tips long into the future so that you always have a solid credit score and healthy credit profile.
1. Get Your Credit Score
Get your credit score. Under federal law, you are entitled to one free credit report per year. Plus, you can use free or paid credit checking services to monitor your score and profile. If you don’t know your credit score, you can’t fix it.
Your first step is being honest with yourself about where your finances stand and what you should do over the next 6 months.
2. Correcting Credit Problems
Correcting credit problems requires a dispute with the appropriate credit bureau. You can dispute through credit check platforms, or you can reach out to Equifax, Experian or TransUnion individually. While the dispute process may take some time, it’s worth it,
Additionally, you may have credit problems that you cannot fix so quickly. Remember that negative items fall off your credit report after seven years. Debt collectors will reach out offering deals so they can get paid, but if an item is close to falling off the report, there may be no point in paying it off.
Moreover, you should keep accounts open when you pay them off. Closing all those accounts you worked so hard to pay off reduces your credit score instead of increasing it.
You can also:
Set Up Automatic Payments
Set up automatic payments for all your credit cards, utilities or loans. If your payments are on time, the credit bureau is getting good information about you. Life is busy and complicated, and it can be easy to forget a payment here and there.
Use Small Loans and Cash Advances
Use small credit building loans and cash advances to bolster your finances, especially when you might have had a hard time paying off certain debts. Platforms like MoneyLion make it easy to infuse your accounts with cash when you need it most. Remember, staying on track is your first priority.
Pay Off Debts With the Snowball Method
Pay off debts as much as you can. Yes, it may be difficult to pay off debts with the little money you have left over every month, but you can use the snowball method to pay off debts faster.
Choose your smallest debt, pay into it faithfully, but when it is paid off, move the money you would have used for those payments to the next largest debt. That obligation will be paid off faster, and you can repeat the process until you are making massive payments on your largest debts.
3. Mindful Additions to Your Credit Profile
Making mindful additions to your credit profile is more important than taking out random loans and opening credit cards. You can use a credit builder loan from a financial platform like MoneyLion to add a positive item to your credit profile. But, you might buy a car, add a credit card with a low spending limit or even begin repaying student loans.
Each item adds diversity to your credit profile.
With every mindful addition, remember to keep your credit usage below 40% as much as possible. Your credit score will waver from day to day, but low credit usage along with proper repayment is a powerful combination.
4. Maintaining a Quality Credit Score
Maintaining a quality credit score is just as important as fixing your score. When you organize your financial life in the manner noted above, you should keep your automatic payments going, never overspend and calculate your credit usage so that you can keep it below 40%.
Plus, you should reach out to your creditors any time you have an issue with repayment. Most creditors are happy to move payment dates, remove late fees and even set up a “promise to pay” that is gentler on your credit. After you’ve done so much work to improve your credit score, assess your current situation at least once a month to ensure nothing has fallen through the cracks.
MoneyLion is a digital financial platform that helps “the 99% feel 100%” about their finances. With simple tools, you can manage your money and make well-informed decisions with options like:
- Mobile banking
- Financial trackers and calculators
- Investing accounts
- Crypto accounts
- Cash advances
- Credit builder loans
- Get paid early
- Buy now pay later
- No hidden fees
- Cashback rewards
Frequently Asked Questions
Yes! When you work on your credit by disputing incorrect items on your credit report, paying off debts, paying on-time, reducing credit usage and building a more diverse debt profile, you can bring your credit score up to 700 from 580.
Fixing your credit fast is easier if you set up automatic payments to avoid late fees and negative items on your credit report. Plus, you can use credit builder loans or new credit cards to improve your profile. Finally, you can reach out to the credit bureaus to remove all incorrect items that are hampering the progress of your credit score.
Yes, you can pay someone to fix your credit. There are professional credit repair companies and individuals who offer services to help improve your credit score and repair any negative items on your credit report. However, it is important to do thorough research and choose a reputable and trustworthy credit repair service to ensure proper handling of your personal and financial information. Additionally, keep in mind that no one can guarantee specific results or an immediate fix to your credit, as the process may take time and require ongoing efforts from both the credit repair professional and yourself.