A good credit report score will make the way to acquire a good loan amount with a cheap interest rate simpler. With 720 or more credit score you can easily get a loan from any bank, financial institution, online lender or credit union. High credit score also provides lower rates & fees as well as higher loan amount and flexible installment facility.
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Let’s know how a credit score can be improved. What are the factors responsible for the lower credit score? But, before that, you have to keep patience. It is not a one-day game or this involves no miracle to fix it quickly. So,let’s get started with the tips without any further ado.
- Analyze the Credit Report: To improve the credit score first analyze the credit score. The credit check online is freely available as per request. After getting your copy evaluate it to find errors. If there is any wrong entry or mistake in the accounts immediately brings to the notice of the credit bureau.
- Set Reminders: Payment of an installmentof the credit is the key factors to improve the credit score. Most of the lenders, including Bank who has an online portal are frequently sending reminders regarding payment date. There are also provisions for automatically debited of credit amount from your bank account, but this formula is not applicable to the large payment. So, to avoid the late hour rush or being defaulting in credit payment sets a reminder by yourself.
- Stop further Debt: To improve the credit score it needs to pay the installment well for which it is advisable to stop making further debit by any means. Stop using credit cards. Start tracking the bank accounts and debt statement. Consciously payment the credit amount and begin from the highest interest rate debts which suck more unnecessary finances.
- Fixed the Past History: To improve the credit score it good tools to decrease the FICO score. To know the FICO score Veda check credit reportfor past history. If there is any late payment or missed payment history first try to fix these. But, this is not an easy job. Here are some tips to keep the past credit history clear from now.
4.1. Pay the credit payment on or before time. Late or missed payment has a very bad impact on the credit score.
4.2. Try to be up-to-date in payment. When you missed a payment, it adds negative marks in credit score and increases the FICO score. But, good this is that the effect of FICO scores diluted by the time. So whatever mistakes you did in the past can be repairable, but it is a time-consuming process.
4.3. The payment history remaining on the credit report and affects the credit score for long seven years.
4.4. A credit counseling service is always there to assist to manage the credit and the payment process. They are well organized and never increase your FICO score. So, these are worth hiring.
- And last but not the least, it is very essential to keep a great discipline in financial deals to improve the credit score and get a further loan.
Overall, the technique to improve the credit score is fixing the past mistakes and conscious not to repeat them again. This is the philosophy behind these guidelines.