Applying for credit is the best thing to do if you dont have cash on hand to pay for it. But you cant just get it so easily since the lender will first do a background check. If everything checks out then it will be approved but if it is low, you might have to pay it back with a higher interest rate that could have been avoided if you knew how to increase your credit score.
Here is how you do it.
Get a copy of your credit score and review each item to find out if there were any errors. If there are, call the crediting agency where you got this from and send them the supporting documents to strengthen your claim. If the investigation shows an error on the part of the creditor, they will remove this from your record that will increase your credit score.
However, if there were no errors and this is caused by excessive spending, then you have to find ways to fix it.
Since money is root cause of this problem, you should learn to spend cash only on the essentials. This means food. Surely you can do without a new pair of shoes, clothes or jewelry for the time being. You may be out of fashion for awhile but you can be trendy later on when things are better.
If it not cash, its probably the credit card that got you in this mess. If you have many, pay off the credit card that has the highest interest rate first then work on the rest. The objective here is to be debt free. When that happens, you can cancel some of them and keep two or three and to maintain your credit score, make sure you only use up % or less of the maximum limit.
For those who make a lot of long distance calls, now is the time to reduce them. You can also cancel your subscription to one provider if there is another one that is offering lower rates. The same goes for cellphones as some companies charge lower or have free air time.
Ever heard the saying energy conservation? This does two things. First, you help the environment and second, you save cash. If you dont have money to pay for debts, taking this step can also help.
Other ways to come up with the money to improve your credit score include selling some valuables, working overtime and getting a second job. Naturally, you will be saving some money for daily needs so any excess should be placed in savings account so creditors will know there is cash stashed somewhere.
It is going to be tough when you are in a hole but this is the only solution to increase your credit score. If you have a few accounts that you dont really need, close them. Only when things do improve can you can do some of the activities you used to do before like going on a trip or doing some shopping.
Is there a certain credit score you should strive for? The answer is yes and this should be above because this is what creditors see as ideal. If you are able to reach that, you are in good standing and be able to get a loan at a lower interest rate.
- Improve You Credit Score
- If you want to borrow money from the bank but find out that your credit score is not that good, you wont be able to get an approval unless you are willing to pay this back at a high interest rate but this can change if you are able to improve your credit score. Here
- Credit Score Chart
- A credit score chart is what creditors look at to see if you are in good standing or not. This helps them decide whether or not to lend you money that you need to buy a car, a house or pay for tuition. Because it does not take into account gender, race, religion, martial status
- Credit Score Scale
- The credit score scale is an indicator used by lending institutions to find out if you are credit worthy. This could be from to and the higher the score, the better off you are. You can get a copy of your credit score scale by getting a copy from an accredited credit agency
- A Good Credit Score
- What is credit score? It is a three digit number that tells creditor whether you can avail of a loan at a high or low interest rate. If your credit score is very low, there is also a possibility that your application will be disapprove. Naturally, you dont want that to happen and this can
- Credit Score Explanation
- Numbers have different meanings. In school, you are given an A if you excel in a particular subject. In the real world, a or could have an effect on your ability to get a loan. This is called your credit score and to give you an idea, here is an explanation. The credit
