Augment Credit Score and Become Credit Worthy – Essential Steps you Need to Follow
Did you check your credit score recently? Well, you must not have done so unless you found that the lender has asked you to show your credit report since you have applied for a loan. If you have a poor score, then you can be sure that the lender will not provide you the loan. He will simply reject your loan application because he thinks you to be a risky borrower. In such a situation, you must work to boost credit score. When you have a good score, the lender will approve your loan at a suitable interest rate.
4 Steps to improve credit score
If you are having a poor credit score, then you’ll find it difficult to get approval for any loan or a new credit card. As such, you will want to boost credit score. Read on to know 4 steps to augment your bad credit score to a good one.
- Get the credit report soon – If you have a bad credit score and you want to work towards boosting it, then you should get the credit report soon. You may order a copy of your credit report from the three bureaus – Experian, Transunion and Equifax without any cost once in a year. Make it a point to go through it thoroughly. In case you find anything wrong, you must get it corrected without delay.
- Pay off the outstanding bills – If you have huge credit card bills, then you should try to pay them off soon. This is because the more you may postpone the payments, the more interest you’ll have to pay on them. Other than this, having outstanding debt means your credit score will drop by several points. As such, take steps to get rid of all your bills so that you can boost your credit score.
- Try your best to make more than minimum payment – Usually, people make only the minimum payment on their dues and this is the reason why it takes a lot time to come out of debt. If you too do the same thing, then it is advised that you try to make more than the minimum payment. Once you start doing so, you’ll find you can pay off your debt soon. This will enable you to enhance your credit score.
- Do not make too many inquiries - Every time you may apply for a new credit card, a loan or a bank account, an inquiry will be made and noted down in your credit history. There may also be inquiries when your present creditors make a note of the late payments. If there are too many inquiries, then this may reveal your creditors that you have a poor credit score. In such a case, you may submit application to get extra credit and make timely payments so that there may not be many inquiries on the credit report.
Thus, you should follow the above-discussed steps when you want to improve your credit score. You will be able to become credit worthy soon.
Guest Post Bio
Stevens is a financial expert and a contemporary writer. He is involved in various online activities through which he imparts financial lessons to people with diverse needs. In addition to that, he is closely working with the ‘Credit Magic community’ at the moment that has several interesting and prudent financial tips for people to use. If you like this article please follow him here.