Top Tips To Increasing Your Credit Score For Easier Loan Approval – Smarter Finance Journal

Top Tips To Increasing Your Credit Score For Easier Loan Approval


Credit ScoreDo you have a low credit score and suffer from bumping it up? Don’t worry, you’re not alone…

Bad credit can be limiting and anxiety inspiring to those dealing with low scores. Rather than trying quick fix methods that inevitably fail, accept that the most effective cure for your credit will take time and patience. If you have been irresponsible with your spending in the past, you will need to change your habits in order to really see improvement in your credit score. Below we have outlined the best ways to increase your credit score!

Where Should I Start?

In the midst of dealing with poor credit, it can be hard to gain perspective on exactly how to move forward. First and foremost, it is important to request a free copy of your credit report. Having this in front of you can help you to identify where the issues lie.

Are you surprised that your score is low? It is possible that someone made an error along the way. Keep your eyes peeled for incorrectly listed late payments, and check to make sure that the amount of money you owe is accurate. If you discover any discrepancies on your report, contact the reporting agency as well as the credit bureau to sort out the issue.


Remind Yourself

Life can get hectic. With so many moving parts, remembering to make on time credit payments can seem like a fantasy. If this is the case, there is probably an easy solution. Get in touch with your bank to determine if there is a way to set up payment notifications. Many banks offer online banking that allows you to customize settings, such as important reminders, without much effort.

Automatic payments are another great way to alleviate the consequences of forgetfulness. To ensure you do not miss a payment, contact your loan and credit card providers to set up automatic payments. Be weary of relying too heavily on this method though, because the payments made are only the minimum amount required.

Reduce Your Debt

In order to really be effective in this endeavor, you will want to discontinue use of your credit cards. While factoring in your interest rates and how much you owe for each account you have open, determine a plan for payment that works with your budget. It may be difficult, but you will want to allot most of your funds to paying off your debt, focusing first on the credit cards with the highest interest rates. Make sure you are not missing payments on any of your accounts. This may mean making the minimum payment on other cards with lower interest rates.a

Repair and Maintain

As you read above, make sure you are making payments on time. The impact delinquent payments have on your score can be very damaging. Even if you have a history of late payments, the benefit of getting on track now is immense. Building a track record of timely payments will be reflected in your credit score, and your history will become less relevant as time passes.

If you have been dealing with collection agencies, it is a good idea to pay off any bills you have with them. However, even if your bill is taken care of, be aware that this will stay on your report for seven years. While this is unfortunate, remember that it will eventually disappear from your record.

Do not be afraid to seek help from a credit counselor. While managing your credit and making timely payments will not instantly be reflected in your credit score, it will help you see increases over time. Talking to a counselor can help you get advice on the best choices to make if you are having a hard time getting by financially. Receiving advice will not negatively impact your score.

What Do You Think?



Leave a Reply

Your email address will not be published. Required fields are marked *

Like Smarter Finance Journal on Facebook
Get it in your News Feed before everyone else.