Knowing this, it's clear to see that the single best way to boost your credit scores is to diligently pay your bills on time. This is vitally important because your payment track record constitutes the largest component of your credit scores: 35 percent.
If you do nothing else to your credit, but simply pay your bills on time for the next six to 12 months, you should see your credit scores begin to rise. You can also quickly improve your credit standing by:
- reducing credit card debt
- disputing mistakes in your credit report
- adding positive information that may be missing to your credit files (such as the credit limits on your credit cards or data about loans you paid off)
- actively monitoring your credit reports to spot identity theft and to learn how your own actions (such as paying down debt or opening new accounts) impact your credit scores; and
- limiting inquiries by only applying for credit when it's necessary
Achieving a great credit rating and learning to master your credit may take some time, but probably not as long as you think, and it's definitely doable. By putting the above-mentioned tips into practice, you can increase your credit scores as quickly as possible, while safeguarding your finances as well.
As mentioned, your biggest focus should be on being timely with all credit payments because if you are late on a bill, you risk potential damage to your credit score – not to mention late fees and interest rate hikes. All of these possible consequences, however, can only be done within the context of existing federal laws.