Want to secure a payday loan? Well, start with boosting your credit score. With a good credit score, you can secure the best credit facility. Even more, it makes it easier to qualify for the best loans. On these lines, here is how to boost your credit score for better financial freedom. Plus, this article is going to walk you through what a credit score is.
What’s A Credit Rating?
A credit score, also referred to as a credit record, is a detailed report comprising of your past financial history. Typically, your credit information can be used in the following instances:
- Approving or rejecting your loan application
- Determining the amount to lend you
- Calculating the amount of interest to be charged on your loan.
It’s important to note that the most recent info on your credit history will have the biggest impact when it comes to assessing your financial situation. This means that any of the financial decisions you made the last six years will be featured on your credit report. If your credit score is bad with a few missed or late repayments, a higher interest rate will be imposed on your loan. Worse still, you might be denied a loan. Normally, people with poor credit scores are considered to be riskier. It’s also imperative to note that your credit score can have a huge impact on your insurance covers as well as mobile phone contracts. That’s why you need to regularly check your credit report. Checking the report will spot fraudulent activities and even mistakes-giving you an opportunity to correct them as quickly as possible.
How to Check Your Credit Information
You can check your credit score from credit unions, credit agencies, and relevant government departments. Getting a credit score is free check out this review. So go ahead and request yours online. You can either go for a full credit score or an online version. All you need is to input your address or email address.
If you want to gain up to date information regarding your credit score, consider subscribing to a credit score membership. This will give you complete control as far as your credit history is concerned.
What Does A Credit Report Contain?
The kind of information contained in a credit score report usually depends on the agency you work with. However, most agencies capture the following main points:
- Your name, address, as well as date of birth
- Search footprints like credit applications
- Other financial links like joint loans
- Past late or missed payments and defaults
- The amount of money you owe other lenders
- Are you registered electorate on your present physical address?
- Have you ever been declared bankrupt?
- Have you ever entered an Individual Voluntary Arrangement?
But a credit report won’t capture things like salary, student loan, criminal record, and driving fines. Also, you won’t see information such as your medical history and council tax arrears on your report.
Improving Your Credit Score
Credit history is often built up gradually as you continue making on-time loan payments. The longer your bill goes unpaid, the more severe the impact will be on your credit score. So, monitor your credit score. Spot any problems or mistakes. And report them in a timely manner.
Have a low credit rating? Well, you don’t need to worry. You can adopt various strategies and boost your credit rating. The following quick strategies will see your credit rating improve significantly.
Ensure that your name is on an electoral roll. Minus this, your credit rating will remain low and increase your inability to access various loans.
Check for Errors
Check to see whether there are any mistakes in your credit report. For instance, a wrong address can severely injure your credit report. So, countercheck everything to ensure things are correct.
Settle Your Bills
Payment of bills can also have a significant impact on your credit score. So, work on it. Be sure to pay all your bills in time. From electricity bills to internet contracts, paying your bills on time will positively impact on your credit rating. So, make arrangements to pay the bills before they are due.
Avoid Negative Links
Are you linked to somebody with a bad credit score? Whether it’s a spouse, family member, or even a friend, being linked with a person with a poor credit score can indirectly affect your credit rating.
Keep Of From Fraudulent Activities
Ensure that all the information on your credit score is known to you. For instance, if someone tried to access credit on your name minus your knowledge, consider reporting the incident as soon as possible. A fraudulent activity on your credit report is likely to paint a bad picture on your side. Consequently, your credit score will be lower. Contact a credit reference agency and have all the information updated accordingly.
County Court Judgments
It’s also important to note that that Country Court Judgments, abbreviated ass CCJs, can also negatively affect your credit score. For instance, if you frequently receive court judgments concerning debts you owe lenders—you might be tainting your credit history. Thus, if you are not in a position to honor these payments, why don’t you consult a debt advisor?
Pay Off Existing Loans
Do you have a lot of existing loans? Well, you might be injuring your credit score unknowingly. Be sure to settle all past loans. You can either seek loan consolidation or refinancing. The bottom line is to settle all past loans.
Don’t move homes frequently. A lender will see you as a potential risk when approving your loan. So, stay in one place for a considerable amount of time before moving. You also want to ensure that your credit utilization remains as low as possible.
Want your financial freedom back? Want to secure flexible loans? Well, think in terms of boosting your credit score. The above article contains all you should know regarding boosting your credit score. From making timely payments to consolidating your loans—these are the tips from Money Network that can instantly improve your credit rating.