Credit score is your first identity in the finance world. In the challenging life, you need to exploit many financial products according to the need. Sometimes you need to get a loan – car loan, personal loan, business loan, home loan etc., sometimes the desire is to get a new credit card. But to get any of these, you need to first qualify for them and for that the first thing that the finance companies check is your credit score. Good credit scorers get an easy approval, bad credit scorers get rejection and very bad credit scorers, oh! It seems they don’t even exist in the picture.
However, the new age finance industry that exists online has brought a new approach. Now credit score performance is not the only decisive factor to get any financial product or service. There are certain ways through which one can survive and can also achieve a better stage in the credit scores.
Start working on the escape windows to upgrade credit rating
To make poor credit situation leave you as soon as possible, start working on the ways that can give a boost to credit score. If not a boost then at least they can remove the possible threats.
When did you check your credit file last? Do it now and make it a habit
In every 5 to 6 months, check your credit file. This has every information about your past and present financial behaviour. If there is any wrong information about it, it should be rectified or removed. The credit reference agencies collect your information from 4 different sources. These are – search data, court records, fraud data, electoral roll information. Attaining information from so many sources may cause imperfection. Did you know, even a different spelling of your name can affect your credit score performance? Check the file regularly and make sure that every information is correct.
Are there any credit cards or bank accounts that are no more in use? Close them
Many people are not aware of the fact that those financial commitments, which are no more in use can affect credit scores. Are you among them? Then it is better to know this.
Such things show in your credit file as your commitments and this suffocates the space in your credit worthiness. It shows as if the concerned person is not responsible towards the responsibilities on finances. For instance – the bank account may go in negative balance. Same is in other cases.
Close them now and get some free space in your affordability. It is similarly applicable in the case of store cards and other financial products that are no more in use.
Get rid of the financial associations with your partner
You have split up with your partner and living separately. Now you think that all your connection with him or her is over and there is nothing left behind. Sorry but you are wrong, if there is any relation on the financial aspect, you cannot consider yourself ‘actually free’. The joint obligations can affect your credit score performance. For instance – a joint bank account from which your partner took the money but is not maintaining the minimum balance can degrade your credit rating. Come out of all such financial associations. Nothing should be left behind as it can affect you in the future.
Borrow funds through specialised loans that facilitate credit score improvement
New age online lending has many loan products that are specifically designed to help you attain betterment. The bad credit loans are among them and through them, you can get a solution of the problem. These loans are customised by the lender according to your financial circumstances and affordability. The purpose behind this is to help you make timely repayments and earn a boost in your credit rating. You may not believe but the same types of loans are also available for the people with very/worst credit rating. The very bad credit loans with no guarantor by direct lender are there if you have a very poor credit rating.
However, forget not that these loans are not available in exchange of nothing, the applicant has to prove the repayment capacity. Current income status, bank statements should show the signs of a reliable repayment capacity. In case, the income status is not satisfactory, the borrower can also back the loan application from a guarantor or collateral. This helps to get the funds at a much lower rate and that in turn makes the repayments easy.
Get on the electoral roll
The finance companies and the credit reference agencies check your information from the electoral roll. Get your name registered here. It helps to qualify for various financial products. Also, it is important to protect you from some fraud. If you are not registered with the current address and someone commits a crime in your name, then you too come under the inspection. If you have moved to a new place but still have the electoral roll document on the old address then change it now.
Wherever you go, credit score issues follow you. Remove them first and then give a new start to your financial life.