How to Clean Your Credit Score Fast

If you’re stuck in a pinch and need credit fast, you’ll probably want to take out a loan. Being low on financial means to finance that car breakdown or fix the roof has happened to the best of us. But what if your credit is low.., how would you get approved for the much-needed credit, and is there a way to build your credit fast? Actually, yes. It’s called credit or ITC clearance and can work wonders for your credit. This blog details everything you should know about your credit.

Here is a quick summary of how to clear your credit fast:

  • Clear judgments, debt review, defaults and other bad marks of your credit history.
  • Pay back your loans and defaults in full.
  • Use our credit improvement strategies.

Read on to discover how you can fix your credit score fast.

The Shortcut: Credit Clearance

If you’ve ever not paid back a loan or had your finances rearranged, it’s time to get it off your credit history. Defaults, judgments, and debt review tell creditors they can’t trust you with money. If you’ve paid everything back, it’s time to talk to the bureaus about removing it from your credit history.

Clear Your Credit

Credit clearance isn’t rocket science. Really, it’s as easy as logging a dispute with the bureaus and presenting supporting evidence that your credit history should be repaired. Evidence can be paid-up letters from creditors, clearance certificates, or bank statements.

Cape Town Legal Consultants do all the legal stuff for you and log the dispute on your behalf with all the proper paperwork to ensure your credit history is squeaky clean within 3 weeks (bureaus only have 21 days to investigate your dispute by law).

The Building Blocks of Great Credit

Once you’ve cleared your credit, it’s time to work on getting your credit score into tip-top shape using our credit improvement tips:

  • Using diverse lines of credit.
  • Pay back credit on time.
  • Maintain a low utilisation ratio.
  • Pay more than the minimum.

Let’s discuss these in more detail. Note: Check your credit score using Credit Boost’s free online credit checker to see where you stand with the bureaus.

Diversify Your Lines of Credit

Having multiple sorts of different credit spreads out your default risk. Lenders also like to see you manage multiple lines of credit responsibly. Try to use store cards, revolving credit (like credit cards) loans like mortgages and auto loans, and personal loans.

On-Time Payments

Making payments on time is a huge portion of your credit score. It shows lenders that you’ll pay them back on time and builds confidence in your financial discipline.

Low Utilisation Ratio

Your credit utilisation ratio is the amount of credit you use compared to what your credit limit is. So, if you use R2000 of a R10 000 credit limit, your utilisation ratio is 20%. A good ratio to maintain is under 30%.

Pay Back More Than The Minimum

Not only does paying more than your minimum help you pay back your debts more quickly, it also helps build your credit. It shows creditors and bureaus that you’re serious about paying back credit.

How to clear credit fast.

The above strategies won’t build your credit up overnight but will put a rocket in your credit’s pocket after some time. If you would like to quickly clean up your credit, be sure to cleanse it of negative marks. Contact Cape Town Legal Consultants to clean your credit today!