How to Improve Your Credit Rating
Whether you have no credit at all or have accidentally run your credit score lower than you’d like, improving your credit rating is an important step toward financial freedom. On the financial scene, the people who most need low-interest loans are often the ones least likely to be able to secure them. Wondering how to improve your credit rating? Try these steps.
Don’t assume that bad credit means you won’t be approved for a loan.
While we do run credit checks on all our loan applicants, just because you have had a previous default, doesn’t necessarily mean we are unable to help you get back on track. As long as your loan will put you in a better financial position than you were previously, we still may be able to approve your loan.
For example, using a Credit24 loan to consolidate a number of different credit cards is a perfectly valid reason. As long as the new loan will fully pay out the credit cards and not be used for regular repayments.
Always make payments on time.
Set a reminder in your phone if that’s what you need to do in order to ensure that payments are made in a timely manner. Better yet, why not organise to have your payments scheduled. Many banks offer Internet Banking platforms that allow you to set up payments in line with your salary. With so many online payment options, there’s no excuse for a check that doesn’t make it to its destination on time.
Keep an eye on your debt to credit ratio.
The fact that you can borrow a certain amount of money doesn’t necessarily mean that you should. If your credit cards are constantly maxed out, it’s a strike against you when other lenders look at your credit.
Don’t apply for new credit too often.
Frequent applications, or a number of recent applications, are a red flag for many credit organisations. Instead, apply for credit only when it’s needed. Keeping the same line of credit open long-term and making payments on time every month will work in your favour; starting new lines of credit frequently won’t.
Remember that repairing your credit–or building credit for the first time–won’t happen overnight.
You aren’t in this for a short-term fix; you’re in it to establish a strong credit rating for the long haul. You can head to http://www.mycreditfile.com.au/ to find out more information about credit scoring. Looking for more information on how you can change your credit rating? Contact us to see how we can help.