Credit score money tips: 3 tips to fix your credit ASAP

Fixing a credit score can take time, but there are steps you can take to fix your credit score. If you want to fix your credit score ASAP, follow along to learn more.

  • Facebook.
  • Twitter.
  • LinkedIn.
  • Print

Your credit score is an essential part of your finances. If you are interested in buying a home or a new vehicle with a loan, you may need to fix your credit score ASAP. The difference between an excellent credit score and a poor one can be worth tens of thousands of dollars over the life of a mortgage, if you can get approved at all. While fixing a credit score can take up to a decade, there are some steps you can take today to get your credit score on the mend. If you want to fix your credit score ASAP, follow along to learn more.

Fix your credit tip #1: 100% on-time payments

The biggest factor in your credit score is your on-time payment history. If you have a series of late or missed payments, your first step to fix your credit score is to turn that trend around. Late payments stay on your credit for seven years, and there is no quick fix to get them removed. But you can start the clock to remove them all for good this month with your first of a lifetime of perfect on-time payments going forward.
If you have trouble keeping up with the bills, stop using your credit cards and set the payments to automatic. This way, you never have a late payment to worry about! Even if you don't have a monthly payment due, many credit cards report an on-time payment. Whatever you have to do to keep a 100% on-time rate going forward, do it!

Fix your credit tip #2: Pay down balances

The fastest way to fix your credit score in a hurry is to pay off revolving credit balances. A revolving credit account is an account where you can add to your balance in the future. This means credit cards and other lines of credit need to be paid down as quickly as possible to raise your score. While it is easier said than done, if you can pay your credit cards down to zero, you should see your score increase if you carried a balance in the past. If you need help putting together a credit card payoff strategy, consider the debt snowball or debt avalanche. This is a method of focusing on paying off one account at a time while making minimum payments on the others. As you pay off each account, your focus payment gets bigger and bigger and has a snowball effect of paying off your debt accounts.

Fix your credit tip #3: Be patient

If you follow tip #1 and tip #2 and don't do anything else, you should see your credit score go up in the long run. If you want to fix your credit permanently, however, it takes time. Those previous late payments hurt your score less and less over time, but it will take the whole seven years for them to go away for good. There is no quick answer to that part of fixing your credit. You have to be patient.

But if you build the right credit habits and hold to them for years, your credit will improve. While you are at it, don't mess with your credit too much. Adding new accounts, increased credit limits, and even applying for a new credit card can temporarily lower your credit score. The more you can keep your hands off and just let your credit accounts age with perfect payment records, the better off your credit will be.

Your credit score is in your hands

It's easy to blame credit card companies, debt collectors, and banks for a bad credit score, but in reality, your credit score is in your control. If you take charge and make your credit a focus, you should be able to fix your credit over time. When you want to borrow with the best terms or use the best credit cards for miles and points rewards, you'll be thrilled you have excellent credit.

Following these habits, I've been able to build my own 800+ credit score. That helped me buy my home and earn hundreds of thousands of travel rewards points for free trips around the world. It couldn't have happened without my excellent credit score. If you want to join me in the 800+ club, follow these key tips to fix your credit score starting today.

Topics:
  • Facebook.
  • Twitter.
  • LinkedIn.
  • Print
Article copyright 2019 by Due from equities.com. Reprinted from February 27, 2019 issue with permission from equities.com.
The statements and opinions expressed in this article are those of the author. Fidelity Investments cannot guarantee the accuracy or completeness of any statements or data.
This reprint is supplied by Fidelity Brokerage Services LLC, Member NYSE, SIPC.
The third-party provider of the reprint permission and Fidelity Investments are independent entities and are not legally affiliated.

Votes are submitted voluntarily by individuals and reflect their own opinion of the article's helpfulness. A percentage value for helpfulness will display once a sufficient number of votes have been submitted.

Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917

882787.1.0
close
Please enter a valid e-mail address
Please enter a valid e-mail address
Important legal information about the e-mail you will be sending. By using this service, you agree to input your real e-mail address and only send it to people you know. It is a violation of law in some jurisdictions to falsely identify yourself in an e-mail. All information you provide will be used by Fidelity solely for the purpose of sending the e-mail on your behalf.The subject line of the e-mail you send will be "Fidelity.com: "

Your e-mail has been sent.
close

Your e-mail has been sent.
piggy

Get more insights from MyMoney

Just sign up and we'll email our latest thinking every 2 weeks.
Not sure? Learn more
We understand that privacy and security are important to you and will only subscribe you to the MyMoney newsletter. See our Privacy Policy.

Here's what we suggest you explore next

5 hacks to prevent falling into credit card debt

With some helpful hacks, you can avoid spending too much and prevent credit card debt. Learn more here.

2% cash back on everyday purchases1

Deposit your cash rewards into an eligible Fidelity account. No annual fees.

You might also like

How to pay off debt—and save too

Here's a guide to help you pay off debt while saving for emergencies and long-term goals like retirement.

5 hacks to prevent falling into credit card debt

With some helpful hacks, you can avoid spending too much and prevent credit card debt. Learn more here.

Pay off student loans faster in 2019

Pay off your student loans faster with these strategies to lower debt and live a better life financially. Here are 7 ways to pay off your student loans faster in 2019.

2% cash back on everyday purchases1

Deposit your cash rewards into an eligible Fidelity account. No annual fees.