If you were going on a date, you’d want to dress to impress and make yourself as attractive as possible. So why not use that same logic when applying for credit, by making your report as attractive as possible to your potential lenders.
“I’m sorry, but I regret to inform you, we are unable to carry out your order for your new ….car, cellphone, furniture, laptop.” Sound familiar?. A bad (low) credit score can be like a noose around your neck when trying to get the things we want in life. From a simple cellphone to a mortgage. But there are ways to cure your financial illness., I suggest you just follow the treatments below.
Pay Those Bills On Time.
Your past reflects your future. Missed payments or late payments on bills will show up on your credit report, this will make any lender dubious about lending you any money or advancing any credit. If a lender sees that you regularly pay your bills on time, this is a good indicator of future performance. Set up automatic payments or use a calendar as a reminder, that way you won’t miss a payment.
Avoid Minimum Credit Card Payments.
Try to avoid just paying the minimum amount each month on credit cards. Although by doing this you are adhering to your contract, you’re not really reducing the balance with any significance. The main problem is, it could affect your credit score if you are carrying a balance that is 30% more than your credit limit. Pay extra every month, or make several payments per month. If possible, pay the balance off every month. The rule of thumb is, use it little and often.
Check For Errors
Don’t just assume your credit report is correct, check it regularly, mistakes can be made. Accounts could be showing as ‘open’ when they’re actually closed. If there are errors in your report, then there are errors in your credit score. With identity fraud on the increase, it’s a good idea to keep an eye on your report, so you can spot possible fraud quickly.
Registered on the Electoral Roll?
This enables lenders to verify who you are, where you live and will boost your chances of getting credit. This is because you will appear more stable to lenders. You can check with your local authority to see if you’re registered.
Don’t Come Across as Desperate
What’s known as a ‘Hard Search’ is carried out on your account every time you apply for credit, which leaves a mark on your report. Making too many applications for credit over a short space of time could have a negative impact on your report. If you have been turned down for credit, wait a while before applying again. Multiple applications could be seen as desperation by lenders.
Use an Eligibility Checker
You can avoid getting refused credit and creating an adverse effect on your report by using an ‘eligibility checker’ first. This will do a ‘soft search’ in which lenders will still be able to see some information on your credit history, but it won’t have any effect on your credit report. When a soft search has been carried out on your account, you are the only one who can see it. These checks show you how likely you are to be accepted, before actually applying.
Get Your Name Down
It could be that you houseshare or maybe it’s just your partners name on the bills. If you pay towards the bills, get your name on them. It’s a great way of showing potential lenders that you are reliable, It might be a good idea to just have your name on some of the bills to boost your credit score. Obviously make sure the bills are paid on time.
Credit Rebuild Card
These cards will carry a very high rate of Apr, such as 35%, but you’re more likely to get accepted if you have a poor credit score, and as long as you use it little and often, and try to pay the balance IN FULL at the end of each month, your credit score will rise over time. As with all credit cards, try to avoid withdrawing cash with them. Not only is this expensive, as the interest is higher and you’ll still be charged even if you pay in full, but it also comes across as bad money management to lenders.