A Credit Report is a review of your financial performance and history. It is what lenders will use to help them determine whether to approve or reject your application for a loan, credit card or mortgage, and other credit or loan.
Improving Your Credit Score
By being diligent with your payments and making sure that you’re protected against fraud, you are assured to improve Credit Score. Here are some tips to assist you to achieve your goal in repairing or rebuilding your credit.
Register On The Electoral Roll
Be certain you are registered at the electoral roll for your present residence, as some lenders or creditors may refuse your application if they can’t verify where you reside.
When you sign up to your Local Electoral Registration Office, you’ll be a registered voter and you’ll have an official record of your residence.
Using Your Credit Card
By paying your credit card balance on time, you can improve your credit rating and build your credit score. It will imply that you are reliable in paying for your debt.
However, you have to avoid credit card charges and avoid securing cash money through your credit card since it’s an expensive way to borrow.
Avoid Missing A Repayment
Missing payments on your utility bills, mortgage, or any other forms of debt will be recorded on your credit file. This can have negative feedback on your credit score, so you have to ensure that you budget your income and resources to satisfy your priority bills.
Check Your Credit Record
You must check your credit report regularly to be certain that all the information posted are up to date. If there are inconsistency or wrong information, you must file a dispute and correct it.
Avoid Payday Loans
If you need to secure cash right away, you should not consider a payday loan. You must explore your options for a much better alternative. Besides, when you apply for a payday loan, your credit score will be hurt once you get accepted. Instead, you can check for other means of borrowing.
Most current accounts allow you to go on overdraft. This overdraft can affect your credit score. An authorised overdraft is the absolute amount that you can go on a negative balance. There have charges in using this type unless you ensure paying it off. On the contrary, an unauthorised overdraft is when going on a negative balance without your bank’s approval, this can cost you daily interest that will be visible on your credit record.
If you keep on going over your spending, you need to contact your bank and ask for an authorised overdraft when necessary.
Avoid Applying Several Times
Each time you apply for credit, this will show on your credit record. This is the reason why you need to wait for a few months before trying your luck to reapply.
Moreover, making multiple credit applications imply how much bad you need to secure credit, which can also affect your credit score.
Before you apply for a credit application, it’s always best to check your credit score and find out the chances of getting accepted. This way, a soft search review will not affect or harm your credit score.