Are you struggling to get a decent rate on a loan, just because you have bad credit? It is true that bad credit can hold you back, but it is also true that it is possible to turn this around. However, improving your credit score will not be easy. The first step of the process is viewing your score from the three Credit Reference Agencies, Experian, Equifax and Call Credit. The tips provided below will help jumpstart your effort.
Contrary to belief, companies make mistakes all the time. Some of these mistakes have to do with customer payment history. Once you receive your credit report, you should look for any potential errors. If you discover any errors on the credit report, you will need to report it to all three Credit Reference Agencies. The idea is to have the error removed, which in turn will improve your credit score.
While errors are extremely difficult to prove, doing so will prove to be very valuable for your credit rating. Do not stop until you convince the Credit Reference Agencies that your credit report contains errors. You can compare free credit report providers over on Lending Expert.
Avoid Making Too Many Applications
Just about every American consumer has credit cards. Of course, these payment instruments come in extremely handy during emergencies. However, it is in your best interest to avoid applying for multiple credit cards simultaneously. This rule also applies to rejections for credit cards.
Making a lot of credit card applications in a short period of time could represent your poor finances. When lenders see where an applicant has applied for multiple credit cards within a short period, they will be reluctant to approve their application.
Every time you apply for a loan or credit card, that transaction is added to your personal file, where it will remain for up to 12 months. Instead of rashly applying for the credit card after credit card, you should determine your eligibility. You can do this by clicking here.
Pay Down Existing Debt
If you are currently struggling financially, you will find it difficult to pay down your existing debt. One of the best ways to jumpstart this task is to create a budget. This budget will help you determine where cuts can be made. Of course, it will not be easy to make these cuts, but if you do not make an effort, you will find yourself sinking lower in debt.
Creating a budget is extremely simple. There are various software programs that will help you through the entire process.
When it comes to tackling your existing debt, experts recommend starting with “the most expensive debt.” Focus on credit cards and loans with the highest interest rate. Instead of paying the minimum payment, pay a little extra. Even if you can only pay $10 extra each month, this will help to reduce the amount you owe. Continue paying the minimum payment on loans and credit cards with a low annual percentage rate.
If at all possible, it would be a good idea to move your debt to a card with a “zero-interest balance transfer.” By doing so, you could end up saving hundreds of dollars over time.