7 Ways to Improve Your Credit Score

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7 Ways to Improve Your Credit Score
7 Ways to Improve Your Credit Score

Your credit score is not just a random 3-digit number. It’s a rating that is used to help lenders decide if you are a suitable candidate for a loan or not. It’s a very important element of your financial standing (and future). The higher your credit score is, the more likely you are to receive loan and credit application approvals. And that can make all the difference when you’re in financial dire straits or need a helping hand with cashflow for a new venture.

The better your credit score is, the lower the interest rate attached to your loan or credit card will be. By improving your credit score, you stand to save money. Don’t worry if you don’t have the best credit score in town though. You can still apply for bad credit loans and get guaranteed approval from direct lenders – you just need to know where to look.

Not everyone is perfect and neither are credit scores. There’s a multitude of reasons why you might have a less than perfect credit rating and it’s important to realise that it’s not all doom and gloom ahead. With a bit of work and strategic financial planning, you can find your way back to financial freedom once more.

First things first, let’s take a look at how we can boost your credit score…

Enjoy a Better Credit Score Even Before Considering Bad Credit Loans

Everyone would love to cut back on their monthly expenses and ensure that they get the best possible deal when offered a loan or credit card. Below are 7 ways that you can start improving your credit score today.

  1. Check your credit report for errors and ensure the information on it is accurate. Sometimes mistakes are made and credit reports have old information. Check your credit report for any inaccuracies and make sure that they are reported as they can negatively impact on your overall credit score.
  2. Reduce your debt to income ratio. Most lenders will complete an affordability assessment with you that determines what your income to debt ratio is. This involves calculating all your expenses and your income. By reducing your current monthly debt, you can improve on this ratio which affects your credit score positively.
  3. Pay all your monthly bills ahead of time or at the very least, on time. It will reflect positively on your credit score if you are a customer that pays promptly and never keeps a creditor waiting.
  4. Pay off more than the minimum amount due on credit cards, loans, and accounts. The quicker you pay off revolving debt, the better your credit score will be.
  5. Keep unused credit cards open. If you have paid off your credit card and it doesn’t cost you hefty annual fees, keep it open. This will reflect as good credit management on your credit report.
  6. Only apply for accounts and credit when you absolutely need to. The more credit checks are run against your name, the worse it will be for your credit score. Keep credit applications and loan applications to a minimum. When you apply for our bad credit loans, guaranteed approval from direct lenders means just one application and one credit check.
  7. Increase your income and prove that you are able to afford new credit. If you rely solely on one income stream and simply scrape by, there could be opportunity to boost that income. Think of side line jobs or part time projects that could pay you a little extra money. When you apply for loans and credit, this additional income will certainly help in the approval process.

Last Word

By following these simple tips, you can improve your overall credit score in just a matter of months. If you need extra cashflow in a hurry and have a poor credit score, you stand to benefit from bad credit loans with guaranteed approval from direct lenders. With these types of loans, a broader overview of your current financial situation and your relationship with credit is taken into account before the loan is approved or denied. Good luck!

 

 

 

 

 

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