4 hacks to boost your credit scores–fast

FICO-score-calculation-300x281Losing points from your credit scores is all too easy — and getting them back is hard. But if you know how credit scoring works, you can hack the process to rehabilitate your numbers faster. Here are four effective strategies to do just that.

(This article first appeared as “4 hacks to boost your credit score quickly” on DailyWorth.)

Pay your credit cards twice each month. Even if you pay your balances in full every month, using up too much of your available credit at any given time can hurt your scores. You can lessen the damage by making two payments each month: one just before the card’s statement closing date and another just before the due date. The first payment typically reduces the balance that’s reported to the credit bureaus, while the second assures that you don’t wind up paying interest or incurring a late fee on any remaining charges.

Dispute old, small collection accounts. The latest version of the leading credit scoring formula, the FICO 8, already ignores collection accounts where the original balance was less than $100. Not all lenders use this formula, though, so you might see an increase in your scores if you dispute that $50 parking ticket you forgot to pay or the $75 medical bill that slipped through the cracks of your insurer’s reimbursement system. The collection agencies that report these minor bills may not bother to respond to the credit bureaus’ investigation attempts, especially as the accounts approach the seven-year mark, where they’d have to be dropped from your credit reports anyway.

Get added as an authorized user on someone else’s account. Another person’s good history with their credit card could be imported into your credit bureau files to help burnish your scores. Plus, the other person doesn’t have to give you access to the account — you can be an authorized user in name only. Some card companies will allow this importing only if you’re a relative, so check in advance.

Pay off your credit cards with a personal loan. Paying down your credit card balances widens the gap between your available credit and the amount you’re using, which is great for your scores. If you can’t pay your cards off immediately, consider moving the balances to a three-year personal loan. Balances on such installment loans don’t affect your scores as strongly as balances on credit cards. Check with your local credit union first, since these member-owned financial institutions tend to offer the best rates and terms on personal loans.

For more of my DailyWorth columns, visit https://www.dailyworth.com/tags/liz-weston.

Wednesday’s need-to-know money news

Zemanta Related Posts ThumbnailToday’s top story: How to cut your monthly bills. Also in the news: College savings mistakes, how to survive a late start in saving for retirement, and what everyone needs to know about credit scores.

6 ways to cut your monthly bills
Every little bit helps.

The Biggest Mistakes People Make Saving For College
It’s all about tools.

Starting Your Retirement Savings Late Doesn’t Mean You’re Screwed
There’s still time.

10 things everyone should know about credit scores
Deciphering the mysteries.

How to Develop a Foolproof Plan to Pay Off Debt
Create your escape plan.

Tuesday’s need-to-know money news

FICO-score-calculation-300x281Today’s top story: Unraveling the mysteries of the FICO score. Also in the news: What you shouldn’t buy with your tax refund, teaching your kids good money habits, and 11 common money mistakes to avoid.

How Many FICO Scores Are There?
More than you’d think.

5 things not to buy with your tax refund
Put down that solid gold Apple watch.

How to Use Allowances to Teach Kids About Money
Instilling good money habits early.

Don’t Make These 11 Common Money Mistakes
Avoid getting caught in a spending trap.

5 Vital Questions To Ask Before Retirement
Remember, this isn’t a permanent vacation.

Monday’s need-to-know money news

o-CREDIT-REPORT-facebookToday’s top story: The ten things you need to know about credit scores. Also in the news: Five ways to save in managing your money, why passive income is worth more than active income, and six retirement planning rules for single women.

10 Things Everyone Should Know About Credit Scores
What you need to know.

5 New Ways to Save Big Bucks in Managing Your Money
How to find the lowest fees.

Why Passive Income Is Worth More than Active Income
Passive income just sits back and gets bigger.

Tax Season Is Over, But the Typical American Is Still Working for Uncle Sam
The beat goes on.

6 Retirement Planning Rules for Single Womenking
Making sure you’re prepared for the future.

Friday’s need-to-know money news

download (1)Today’s top story: The best credit card freebies. Also in the news: Breaking bad money habits, the worst states for retirement, and apps that can save you money while shopping.

8 Credit Cards With Freebies
Perks from the get go.

5 Ways to Break Your Bad Money Habits
Breaking the cycle.

10 Worst States for Retirement
States to reconsider.

The “Cash Back” Apps That Can Actually Save You Money When Shopping
Take your smartphone shopping.

Thursday’s need-to-know money news

Household-Budget1Today’s top story: How a good budget can help you build credit. Also in the news: Avoiding financial scams, tips on managing your elderly parent’s money, and five money rules for a successful retirement.

How Your Budget Can Help You Build Credit
A good budget can help you build a great credit score.

10 Tips To Avoid Common Financial Scams
Don’t be taken advantage of.

Managing Your Mom or Dad’s Money
Taking over a difficult task.

5 Money Rules For A Successful Retirement
How to make your money last longer.

Wednesday’s need-to-know money news

Zemanta Related Posts ThumbnailToday’s top story: It’s tax day! Also in the news: Apps to teach your kids about money, personal loans vs credit cards, and why a good FICO score matters when buying a home.

Time’s Up! It’s Tax Deadline Day
No more excuses!

5 apps to teach your kids about money
Just in time for Financial Literacy Month!

The Pros & Cons Of Personal Loans vs. Credit Cards
It’s all about the interest rate.

The One Graph That Explains Why a Good FICO Score Matters for Homebuyers
The better the score, the better the terms.

Tuesday’s need-to-know money news

bigstock-U-s-Income-Tax-Return-Form-28476797-e1390508229663Today’s top story: How to finish your taxes before the deadline. Also in the news: How to file for a tax extension, when your employer can check your credit, and why you need to pay close attention to your parents’ financial advisors.

The Procrastinator’s Guide to Finishing Your Taxes
The clock is ticking.

How to File for an Extension
Buying some time.

When Can Employers Check Your Credit?
Far less often than you might think.

Hidden Dangers With Aging Parents’ Financial Advisors
Paying close attention is vital.

The Ultimate Tax Day Guide: Post Office Hours, Freebies and Expert Tax Refund Tips
Free shredding!

Monday’s need-to-know money news

Zemanta Related Posts ThumbnailToday’s top story: What to do with a financial windfall. Also in the news: How to financially survive a military deployment, what you should cut back on first if you lose your job, and how to protect your retirement nest egg.

How Not to Blow a Financial Windfall
The yacht can wait.

3 Things Military Wives And Husbands Can Do To Secure Their Finances
Surviving deployment financially.

The Budget Categories To Cut Back on First When You Lose a Job
What you need to immediately cut.

How Retirees Can Build a Portfolio for the Next 30 Years
Protecting the nest egg you worked so hard to create.

Friday’s need-to-know money news

teen-creditToday’s top story: Finding the best credit card for your teenager. Also in the news: Financial date nights, what to do if you can’t pay your taxes, and keeping old credit cards on your credit history.

5 Credit Cards for Teens
How to make sure their first card is the right one.

Avoid money fights with financial date nights
Dinner, a movie, and money talk.

Can’t Pay Your Taxes? How to Get IRS Relief
Don’t ignore the problem.

Use Recurring Charges to Keep Old Credit Cards on Your Credit History
Avoid the ding of a closed account.