At PiggyBank, we don’t believe in “no credit check loans“. However, even if you have a poor credit history we may still be able to help secure a short term loan. We understand that people with poor credit can struggle to get a loan. That is why we take other factors, such as your employment information and income and expenditure. That being considered, if you’re looking to improve your score, here are 5 handy tips.
This is the fastest way and the first thing to deal with in order to boot your credit score. You have to find any mistake that can pull down your credit score and fix it. Your credit reports contain information about your credit score. You can use these reports to manage your accounts. Since identity theft is now on high rate, you need to have a close look on your account regularly.
2.Pay on time your bills
If you want to have an outstanding payment history, you need to pay your bills on time. This is the biggest factor to determine your credit score. If you have a damaged credit history, this is the best way to rebuild it.
No matter your past credit problems, the delay of payment, and the number of creditors involved, if your payment history for the past twelve months is good, the result will be noticeable. The information on your past-due payment will stay on your report for the next seven years. Meanwhile, you will still improve your score if you make constant payments on time. A negative mark on your payment history will pull down your credit score.
3.Do not reach the limits
In order to gain some points for your credit, you have to reduce the balances of your credit cards. If you have numerous credit cards, it is wise to spread debt between them instead of reaching the limit with a single card. Your payment history (35 percent) and outstanding debt (30 percent) account for 65 percent of your credit score. Instead of moving around, you will be wise to pay off your debt.
4.Choose the long term
The length of your relationship with your creditor accounts for fifteen percent of your credit score. If you plan to shop for another loan such as a mortgage for which you will have a good score, do not close any account.
Closing old accounts and opening new ones will affect your credit score negatively. It is an unwise move to make if you plan to apply for a big loan in short time. In order to build a credit history, you may need two credit cards but adding more card debt can pull your score down. It is better to keep low the balances of the two cards and pay them fast.
When you apply for a loan, the lenders will verify your credit. These inquiries can impact negatively on your credit score. Therefore, before applying for a credit card or a loan, begin by shopping and comparing rates. It is better to do all your shopping during the same month.
To check your credit score for Free, just visit Experian.