Improving Your Credit Score

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A history of bad credit or a poor credit rating is costly and stressful to the individual concerned. Invariably, no one wants to carry the burden that goes with living with a poor or unsatisfactory credit rating as this may affect your chances as getting a business loan. Thank goodness because even the worst case scenario of poor credit rating can be reversed though it must be with determination and some concerted efforts sustained for a period of time but nothing is impossible. Here are some strategies that could help you improve your credit rating:
Get Your Credit Report as soon as Possible: You need to obtain a copy of your latest credit report from the agency concerned with computing people’s credit rating. Really, that is the first step towards improving your credit rating. The latest report should include all the accounts or debts with red signals that are weighing your credit worthiness down and negatively impacting your life in many ways. Take your time and review the report. Note the debts that you must focus your attention on in order of importance.
Note Any Errors and Put up a Dispute Immediately: Any potential errors on the report provide you a ground to dispute the errors without any further delay. Contact the creditor or the credit bureau to have the errors removed from your debt profile as soon as possible. An error will impact your credit rating no matter how small. If you are not at fault, why should you allow your life to be negatively impacted by the fault of people who are paid to do things the right way? If for example you made a payment promptly but it was recorded as a late payment, that error inadvertently made may cost you some points in the region of up to 100 points on your credit rating.
Consider Stopping the Use of Credit Cards: In the meanwhile, you may decide not to use any credit cards or take up any payday loan while you work on ways to make full payment for any outstanding balance on your debts accounts with moneylenders. If there are no new purchases on your credit cards, any repayment of your debts will start to show some signs of recovery since the credit utilization will drop. However, if you fail to control your appetite for credits at this time, you can only worsen the situation when your credit utilization will start to rise. Credit utilization is the ratio between the limit on your credit card and your debt account balance.
Be Concerned about Paying off the Past personal loan debt due on your Accounts: Any payments that are past their due dates without being paid will weigh heavily on your rating. Clearing these payments as soon as you could do it will help you improve your rating.
If you keep your efforts geared towards paying off your personal loan Singapore in focus while not adding to it, you will see marked improvements in your credit rating bye and bye.

Category: Credit Score

Effective Ways to Rebuild Bad Credit Records

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Is your past credit record hindering you from getting a new personal loan? It’s hard to get by those bad credit records, but it’s never too late to rebuild your credit habits. Most people would quit getting credit cards and cash loans after a bad record. However, there are effective ways to practically change the bad habits, which will eventually give you a more responsible credit background in the future.
Get a New Credit Card
The point is to apply for another card or loan to get a good record back on your name and account. You cannot prove yourself to be a responsible adult if you don’t apply for another loan. Most major banks will never allow you to get another credit card because of your low credit score. However, you can apply for a credit card from a local bank or even in a department store. You can also get a secured credit card, which is easier to get approved because of the security deposit that they require. This is one important step that you need to do to set your records straight.
Practice New Credit Routines
After you’ve been approved for a new credit card or financial assistance, you have to develop ways on managing your new account well. This includes wise buying or wise spending. You have to be careful of your credit habits again. Always make it a point to charge only what you can afford. Never take a payday loan that is more than what you are earning. Remember to stay below your credit limit and watch your credit record improve from you previous statistics.
Pay Every Credit on Time
Never procrastinate on payments. What you don’t pay now, you might not be able to pay later. As more payments need to be paid, you may end up covered in loans again – loans that are more than what you can afford to pay. Set a date and time every month to review your credit dues and records. Regard it as part of your life, like eating or sleeping. Don’t ever neglect credit bills as they come on your doorsteps or on your emails. Pay your dues even before your due date. Be organized in paying bills and you will be back on track with the credit companies. In this way, you will be able to rebuild your bad credit statistics.
Practice will make you a good creditor. Have that courage to apply for a loan again, so you will be able replace your bad credit records into a good one. Another important tip is to start with just one credit card first. When you can manage it perfectly, you can proceed and get another loan. This way, you will not be loaded with much responsibility as you correct your wrong credit habits in the past.