Everyone is looking for ways to improve their credit, as the economy is little less than desirable. With a bad credit score it is difficult and sometimes, impossible to get your loan approved, and even if your loan does get approved, the interest rates will be high and unbearable’ this makes your financial situation even worse.So, it is important to repair your credit score before you apply for a loan or other credit. Below are some of the tips that help you to improve your credit score:
Check your credit report first: Your credit report contains all the information on your finances, including how much you owe to your creditors, all the payments you have made and the unpaid payments. This will help you in estimating where you stand financially and how much progress can be made
If you find any errors and omissions in your credit report then immediately report it to the credit reporting agency: You have every right to challenge these errors as they may affect your credit rating. Check out your credit report properly and find out which entries lowered your credit score
Clear off all the debts that have been noted on the credit report: This will surely increase your credit score.To pay off the urgent bills you can choose payday loans as they don’t have a negative impact on your credit score and can be granted without any credit verification
Pay off your high interest rate debts first: This will reduce the burden of paying more than you owe; this is the best way to avoid the debts from continuously accumulating
Track all your expenses and income: Categorise your expenses as regular and irregular; allocate a fixed amount of money to each category and strictly stick to that whilst spending
Pay your bills on time: This will assure your creditors that you will continue to pay your bills on time in the future. Late payments will affect your credit score and shows you as an unreliable person. Your payment history is the key to get approved for various credits and loans
Do not respond to the pre-approved credit card offers you get through mails: Easily approved credit cards can hurt you, so be aware of them; lessen the cards and the better your credit score will become
Use your credit card in right manner: Don’t put in many credit applications, this may affect your credit score and try to avoid prepaid credit cards. It is advisable not to use all the available cash on your credit cards and also put limit on the number of credit cards you avail
Don’t cancel your credit cards especially, when there is some balance: Cancelling the credit cards will hurt your credit score instead of improving it
Contact your creditors: To reduce the burden of paying high interest rates on the amount you owe,try and negotiate lower interest rates with your creditors. Sometimes the creditors allow these things and you will be profited
Develop good spending habits: Cut down unnecessary expenses, starting from smaller things like eating out to bigger things like buying a new car or new plasma TV, to pay off your debts; this is always a good thing to improve your financial stability
Prepare a budget or financial statement: Prepare a list of expenditure and your earnings. If you find that your expenses are more than your earnings then for sure there is something wrong. Find out what is wrong and try to rectify that
Get the help of financial advisor : If you are unable to manage money and are feeling the pain of low credit score then it is time to look for a good financial adviser who can help you out in preparing a budget and reduce your debt.
This article is written by Michelle a writer from UK.
