Tips to Fix the Bad Credit Score
by Finway FSC Empowering People FinanciallyIt is very difficult for people with bad
credit score to get a loan. There are some companies and lenders that provide poor credit loans
but these people can sometimes scam the person, and even interest
rate at these lenders is very high. Apart from issues with availing loan, there
are so many other problems that one will face due to bad credit score. Here are some of the tips that will help you
in fixing the bad credit score.
Stay on top of the Payments
It is important for you to keep your debts in
green. This will depict to your lenders that you are responsible with credit.
Payment history is the most impacting factor when it comes to getting the loan.
You cannot skip any EMI or other payments if you are planning to improve the
credit score. Because delaying in the EMI payment will project you as a
negligent person who will eventually result in poor credit score.
Keep a Check on Your Credit Utilization Rate
Weigh the balances relative to your credit
limit to make sure that you are not using too much available credit. This is
one of the practices which are quite risky. Most of the people get carried away
with the credit card and keep on spending the amount, but it is important for
you to be aware of the credit utilization rate so that you won't get any kind
of shocks in your credit card bill.
Show Your Old Debts on the Report
Once you are done with the student loan or any
car loan, you will be eager to remove it from your report. But if you have paid
these loans on time, it will be beneficial for you to include them in the
report. There is no need for you to immediately close the account that you have
been using for the car or student loan. You can keep on using the account for
normal purposes and show it to the lenders. The lenders will understand that
you take full responsibility while repaying the loan. If you have any bad debts
that damage your reputation, it is better to remove them immediately.
Be Patient
Improving the credit score is like a marathon,
not a sprint. It will take time and efforts from your end to get the best
credit score, and you have to be very patient about it.
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Created on Apr 30th 2019 02:47. Viewed 90 times.