As you know, the credit score is the number makes lenders such as credit unions, banks… decide whether or not to approve the personal loans, and what types of the personal loans to offer to customers. However, if you have the bad credit score, you have less choice to get the loans. How to improve credit score to get the best personal loans?
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IMPROVE CREDIT SCORE
With little competition in the financial markets today, many credit institutions make loans without much credit score. However, owning a good credit, you will have more opportunities to choose the lowest interest rate loan. For more loans that a good credit score is available to you, read our previous article such as Good credit score. Today, let’s find out how to improve your credit score.
There are six steps you can take now to start on the path to better credit.
1. You need watch the credit card balances.
To improve your credit score, “pay down your balances, and keep those balances low,” says Pamela Banks, senior policy counsel for Consumers Union.
You should consolidate them with a personal loan if you have much credit card balances. That can help your credit score.
2. You need to eliminate credit card balances.
“A good way to improve your credit score is to eliminate nuisance balances,” says John Ulzheimer, a credit expert. Those nuisances are the small balances people have on the number of credit cards.
One of the items the score considers is just how many cards have balances. That’s why charging $50 on one card and $30 on another instead of using the same card can hurt the credit score. The solution to improving the credit score is to gather up all the credit cards with small balances and pay them off. Then select one or two cards that can use for everything.
3. You should leave the old debt on your report.
The good debt — debt that you’ve handled well and paid as agreed — is good for the credit. The longer history of good debt is, the better it is for the score.
One of the ways to improve the credit score: Leave old debt and good accounts on as long as possible. This is also a good reason not to close old accounts where customers have had a solid repayment record. “You never want that stuff to come off your history”.
4. You should use the calendar.
With three types of loans – mortgage, auto and more, student loans – a scoring formula that allows you to make multiple applications but only one loan.
A FICO score, a credit score commonly used by the lender, ignores any such request made in the 30 days prior to the scoring. If it finds a number greater than 30 days, it will count those who are made in a typical shopping time as just a requirement.
The length of the shopping period depends on the credit score used.
If the lender is using the latest scoring software, you have 45 days, says Ulzheimer. With older models, you need to keep it for 14 days.
The older forms of software will not count as many questions about student loans as one, no matter how close you create applications to one another, he said.
5. You should pay the bills on time.
One of the biggest components in a good credit score is simply monthly after a simple, strenuous payment. “Credit scores are determined by what’s in your credit report,” Linda Sherry said, she is a director of the national consumer for Consumer Action. If you are bad about paying your bills – or paying on time – it ruins your credit and hurts your credit score, she says.
That may even extend to items that are not usually associated with credit reports, such as library books, she said. That is because even if the original “creditor”, such as the library, did not report to the office, they could eventually call in a collection agent for an unpaid bill. The agency may very well list the categories on your credit report.
Putting money into a savings account for large purchases is smart. Just do not light the usual bills to do it.
6. You should not hint at risk.
Sometimes, one of the best ways to improve the credit score is to not do something that can sink it.
Two of the biggies are missing the payment and suddenly pay less (or charge more) than usual, said Dave Jones, president of the Association of Independent Consumer Credit Counselors.
Other changes can scare your card issuer (but not necessarily hurt your credit score): get cash or even use your card at businesses that can tell you currently or future money, such as a pawn shop or a divorce lawyer.
“You just do not want to do anything that might indicate risk,” Jones said.
So to improve your credit score from bad to better then what you need to do is to study carefully the steps that we guide you above. In the process of improving your credit score, it is important to check your current score. If you are not sure how to check them, please refer to our previous article on checking your credit score through the link Check credit rating.
Indeed, improving credit score is not an easy thing. If you have bad credit scores but want to get loans immediately, fast loans to solve the work can refer to the loan as Easy loans for people have bad credit, bad credit personal loan lenders, Secured loan bad credit…
Hillary (Team Content) – Info Credit Free