Credit Repair

How Timely Payments Can Boost Your Credit Score Within Six Months?

Are you struggling with bad credit and are looking out for ways on how to boost your credit score within a short period of time? If yes, you will be glad to know that you can do this within just six months of time; all you have to do is just to focus on timely payments of your debts and bills. There are three major credit bureaus that maintain the entries on your credit reports, which eventually help others (such as, lenders, landlords, utility service providers, and employers) to decide how responsible or irresponsible you have been in dealing with your financial matters. A low score means you are financially quite irresponsible. A high score on the other hand means people can trust you when it comes to having some financial transactions with you. Following is a brief rundown on how timely payments play such an important role in all this.

Timely Payments Make Up 35% Of Your FICO Score

In order to boost your credit score, you just have to work seriously on those factors that make up your score. Do you know that 35% of your FICO score depends entirely on whether you are making the payments toward your debts and other bills in a timely manner or not. If you are making late payments or are making defaults, it seriously damages the health of your credit report. Whenever you miss a payment or make a late payment, your creditors transfer this information to the credit bureaus who then make entries regarding the same on your report. This is how you eventually see a serious reduction in your score. So, if you focus on keeping yourself current with all your debt payments, it should not take you a very long time before you can see some significant improvement in your credit score.

Spend Less, Save More

You probably need a lot of extra money to make timely payments so that you can boost your credit score. The absence of that extra money is probably the main reason behind late payments or defaults. You can arrange that much needed extra cash by doing some tight budgeting. Budgeting works on a single principle – spend less and earn more. If you reduce your expenses and increase your income, you will definitely end up having a lot of extra cash, which you can then use towards your debt payments. Avoid all those expenses that you can live without and are not very important. At the same time, try to work overtime or get a second job so that you can boost your income also.

If you can, you should also try to make a higher payment than required so that you can reduce the debt balance much faster. This will again accelerate the results and will boost your credit score, as low debt balances against high credit availability makes another 30% of your FICO score.

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Posted in Build Your Credit, Credit Repair | 1 Comment »

One Response to “How Timely Payments Can Boost Your Credit Score Within Six Months?”

  1. John says:

    Plastic Money attracts every body but it is not easy to mange it properly. Credit Cards are the necessity of today’s life but it is very important to use credit cards in a sensible manner. Timely payments of your credit balance can give you a new height in a very short span of time. Sometimes we focus on our expenditure only we do not think about saving the money but saving is very important. Budgeting can help you to save that extra amount of money which can help you to do all the payments of your credit balance in time. You have to control your expenditure and try to earn more.

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