How to Improve Your Credit Score
In the world we live in today, people have different dreams, aspirations and goals that they want to achieve. In the quest of achieving these dreams, they may want to borrow money to sort out certain things that are serving as hindrances to the accomplishments of their goals.
However, over time people always have challenges in borrowing money from individuals and lending Organizations. In most cases, these people are considered not credit worthy as they may have some bad credit records in the past. This can easily limit their chances of getting loan from any lender if nothing is done about it.
Has your loan request ever been declined in the past due to your credit score records? Well, your problem ends today as this article is tailored towards helping your improve your credit score.
Credit score is a record that shows or evaluates the creditworthiness of an individual and this record is usually based on credit history. This record is a statistical data that analyses the credit activities of an individual over a period of time and how often he is able to pay his debt as at when due.
Credit score is an important parameter used by lending institutions to ascertain loan eligibility of an individual as well as the terms of such loan. Generally, people with bad credit score may find it extremely difficult to get loans and if they eventually get, the terms of such loan may be exorbitant. This is due to the risk of lending money to such people.
However, that you have a bad credit score is not actually the end of the road for you in borrowing. This is due to the fact that there are ways of improving your credit scores and make you creditworthy again. Some of the ways of improving your credit scores are;
- Check Your Credit Report: One of the easiest ways of improving your credit score is to periodically ask for your credit report and peruse it if there are any errors on the records. Once you detect any error on the report, dispute such error online following the right channel. Such error can either be disputed via Equifax, Experian or TransUnion. This process will help to erase all errors from your credit report and give it a credible record.
- Negotiation: Most people that end up not paying their debt as at when due may not be intentional. Some must have lost their jobs after borrowing the money. In situation like this, you have to ensure that you negotiate with your creditor properly so that he doesn’t leave a bad record on your credit report. You can put it in writing that if he erases any debt or account that went to collection during the period, you will pay the outstanding balance once. Make sure he agrees to do this in writing. If this works for you, your credit score will be very clean and this will make you creditworthy.
- Set Up A Payment Reminder: Paying your debt on time and as at when due, can positively affect your credit scores which will in turn improve your creditworthiness. In view of this, it is advisable to activate payment reminders with your lenders so as to remind you via text messages or emails when your next payment is due. This will show the promptness of your payment on your credit records, improve your credit score and gives confident to any lending institution that you are taking a loan from.
- Check your credit limit: Credit limit can be seen as the maximum amount of credit a credit card company allows you to spend on a single card. Ensure that your credit limits are very current and always spend below the limit. This is because of the fact that once you exceed your limit on a credit card it will not speak well on your credit score. As part of being conscious in your spending and borrowing habit, you can request your credit limit to reflect on your credit card.
- Raise your credit limit: If you know yourself as a disciplined spender, you can ask your creditors to increase your limit. This limit could be as high as $3000 dollars. However, it is always good to be careful when you are using this approach to improve your credit score and it is better for people who are highly disciplined in their spending. This is because with this new limit, some people can improve their spending habits accordingly. This can lead to you using over 60 percent of your credit each month and this will send a bad message to any lending institution you approach for loan. It will definitely affect their confidence and trust in granting you loan.
- Don’t Hint at risk: Lenders are always very careful as they don’t want to be lending their money to somebody who has the tendency of not paying the money. In view of this, it is always advisable not to do anything that could sink your credit worthiness. The two areas that borrowers always have this issue are the areas of missing payments and paying less of the agreed amount. With these records on your credit report, it will affect your credit score drastically.
Once you proactively follow the above guidelines, you can easily improve your credit score over time. However, most people will always prefer the services of credit repair and restoration specialist. This is because of the fact that they always give professional advice that will help to restore your credit score.
There are several credit repair specialist today, but one of the most reliable experts in this area that people consult often is New Life Credit Help LLC. They are highly experienced in their area of expertise and always go extra mile to ensuring that their clients’ credit related issues are restored.