How to Improve Your Credit Score
Struggling to get a bank loan approved due to bad credit score? You are not alone.
As bank’s lending rules become stricter, applicants with low credit scores are finding it exceedingly difficult to obtain loans.
Banks evaluate several factors to determine a potential borrower’s credit worthiness. Of course, credit score is one the most important determinants that can make or break anyone’s case.
Not only does your credit score play a key role in attaining a loan, it will affect different aspects of your life. For example, if you apply for a job, there is a great chance your employer could check your credit score to analyse your financial worthiness.
In other words, your credit score reflects your borrowing and spending behaviour and indicates how financially responsible you are.
If you need to improve your credit score, the most important thing to remember is that it will not happen overnight.
After years of financial mismanagement, you have ended up with a low credit score. You cannot, realistically speaking, expect to boost your score instantly.
Here are some effective tips and tricks to you can follow to improve your credit score:
Know Your Credit Report
First, get a copy of your credit report and go over it. Your credit report consists of your credit score and other financial information. Before you try to fix your credit score, you need to understand positives and negatives in your report. Check your debt level and payment history. If you find any errors or inaccuracies, inform your credit bureau immediately for resolving it. Errors or inaccurate information can decline your score further.
Keep an Eye on Credit Card Balances
How much revolving credit do you have? Of this, how much are you actually using? Try to keep your credit card balances low. If you have outstanding balances, pay them immediately.
Instead of holding of multiple credit card balances, you should consolidate them with a personal loan. These simple tips can help you to boost your score.
Pay your Bills on Time
Always pay your bills on time, especially your credit card and loans. Late payments should be avoided at all cost. Set up reminders on your phone so that you do not miss payment dates.
If you do not have the money to make payments on time, inform your bank or lender. They can work out a payment schedule for you.
Avoid Taking More Loans
Loans have a major impact on your credit score. Excess debt is likely to reduce your credit score. Do not apply for fresh loans during this time.
As a matter of fact, save some funds from your salary to finance emergencies. Also, set a budget and stick to it every month.
Sign up for Debt Counselling
Last, but not least, get in touch with us for debt counselling services. As one of the largest debt counsellors in South Africa, we educate our clients about smart financial management that can help improve their credit score. We also contact their creditors and arrange for a reduction in the interest amount they pay each month.
Call now at 0861116197 or fill out this convenient form to receive your FREE credit report.