A bad credit file can haunt you for years and may make it hard for you to secure a mortgage or get a car financing. Although there are loans available for people with bad credit, a better credit score gives you access to better deals, interest rates and features when applying for a loan. The good thing is, a bad credit score is not forever. You can improve your credit score as well as your financial situation in so many ways.
5 Steps in Improving Your Credit Score Fast
Keep your card balances low
The very basic tip you can follow in improving your credit score fast is by paying your credit card balances. The less debt you have, the better your credit standing will be. If possible, pay your credit card balances in full or twice or thrice the minimum required payment every month. A high outstanding debt can greatly affect your credit score.
Bad credit histories and bad credit rating are mostly associated with credit card balances. Securing a car even though a car loan with bad credit can be quite difficult with too much credit card balances on your plate.
Pay bills on time
Although it is a must to pay a bill on time, some people still fail to do so. Whether its lack of finances or simply forgetfulness, not paying your bills on time reflects on your credit file. With the Comprehensive Credit Reporting rolling, paying bills on time can do a lot of good on your credit file. What can the Comprehensive Credit Reporting do for your finances? It simply includes the positive notes on your personal finances – such as paying bills on time – which in turn balances whatever negative marks you have on your credit report.
Taking out car financing is possible even with a low credit score through bad credit car loans. If you are approved for a bad credit loan and you religiously pay for it on time, it will affect your credit score positively. If you want better finance options, finance applicants should clear out or at least keep their credit card balances on a minimum before thinking of applying for a mortgage or a bad credit car finance.
Keep good debt accounts on your credit report
It is not a good idea to remove old accounts and debt on your credit report. Most of them usually take 7 years before they are removed from your credit report. However, you might want to keep the debts that were paid on time and handled well on your file. To be able to increase your credit score, you need to have a deep, good credit history to vouch for your creditworthiness.
A good credit score gives you a competitive rate when applying for personal loans from reputable lenders and finance brokers. Your loan approval will have better chances if you have a long list of credit – good credit history – under your belt.
Keep loan applications in check
Applying for credit and taking out a loan will reflect on your credit report. A failed loan or credit application will be recorded on your credit file as well. Multiple attempts to apply for a credit or to take out a financing, say a car finance or a mortgage, and failing in the process will also appear on your file and will affect your credit score negatively.
This is the reason why it is important to seek advice or help from a loan specialist when applying for a mortgage or taking out a loan. They can check if you are qualified for a financing or a home loan without an inquiry appears on your credit file. A loan specialist can also give you tips on areas on your personal finance that you can change to be able to improve your credit score and better your chances in taking out a mortgage or financing.
In Intellichoice Finance, we seek to help people with good and bad credit alike. However, those who have bad credit to worry about, we can provide non-conforming loans with the best possible rates and repayment terms – despite issues on your credit score. Another advantage would be our genuine care towards the soundness of our clients’ personal finances. If you do not qualify for a loan at present, we can guide you and give tips on how to improve your situation and get better chances for approval in the future.
Ask help in reviewing your credit report
If you would want to improve your credit score that badly, trying too much, on your own might not help. You might want to speak to a financial adviser or to a loan specialist should you seek a loan to be able to understand your credit file and credit score – and do something about it. They have more experience, training, and the right knowledge in giving you a clear picture of where your personal finances are.
A good credit score is just a number. However, a sound personal finance makes life better and easier for you. Follow these tips and build your credit score – if not fast, but steadily and surely, this time around.