Tips on Improving One’s Credit Score
With the unstable economic status of many countries today, people have been taking out cash advance loans to make both ends meet and sustain their needs and their families’ needs. And with that, some have paid their dues on time while others continue to take out more loans without paying for their previous obligations. As a result, lending companies and banks note them with bad credit scores.
Knowing that bad credit scores can keep one from taking out loans in the future, there is a need to correct such standings in order to be eligible for borrowing money when the need arises. How can one do this?
Here are some few important tips.
1.Secure a copy of one’s credit reports
This would serve as a foundation for determining which credits are giving one a bad reputation. By getting this report, an individual will be able to make a plan of paying up those which are hurting their credit scores.
2.Correct credit errors
There will be times when erroneous credit reports are made against an individual. The moment this is noticed, that person should make a correction report to the credit bureau or to the creditor who made such report.
3.Avoid making more purchases using the Credit card
It may always feel tempting to swipe that plastic money again. However, this has to be stopped or avoided at least. Earning a higher credit will affect one’s credit score. So be wary.
4.Pay up past dues
It is important to note that 35% of one’s credit score is based on one’s payment history. So if there are still dues from the past, get up and pay these off to avoid getting a negative score.
5.Resist the urge to apply for a new credit card
How convenient it would be to apply for a new credit card. This is for the reason that it can lower one’s credit age which will consequently hurt one’s credit score.
6.Do not close delinquent credit accounts
Some people think it is best to close such accounts; however, it should not be done it can hurt one’s credit score especially if the lender stops reporting the credit limit.
7.Use that credit card in moderation.
Indeed, it would be fun to splurge without having to take any money out of one’s wallet for the time being. However, the feeling would not be the same once the statement of billing arrives.
8.Keep balances low.
Never max out that credit limit. Instead, use the credit card only for instances when instant cash is necessary. Otherwise, keep it inside the freezer.
9.Communicate with the lenders.
Should there be times when paying up on time is difficult, then consider calling the lender to explain and perhaps negotiate for an option. There are many lenders who may be willing to compromise.
Cash loans, the solution when bad credit scores are reflected
If one falls in a situation when money is immediately needed but the credit score is bad, cash advance loan is the solution. Though it conducts credit checks on its applicants, an approval is still very likely as the company does not mind bad credit scores.
Log on to www.cashadvance.com.au to know more about its offers.