Fix Your Credit Quickly

To damage your credit is just too easy, some people don’t have any idea of the implications involved in credit and how it works. When you apply for any type of financial product on a large scale then you will most likely be on credit for that product whether it be a mortgage or loan. The problem is that even the smallest things can damage your credit to extreme lengths, from late payments to missed payments and defaults, even arrears. So what do we do if our credit is so bad that getting credit is a very hard job, as well as being far more expensive? lets take a look at some options.

(1) Pay off outstanding debts

Paying off any outstanding debts will automatically aid towards the improvement of your credit, as long as the debt has been paid, even if late, you will find an improvement in your credit, but remember you may have to notify the credit agency involved that the debt has been settled.

(2) Make payment arrangements

Instead of leaving those debts in the closet why not make payment arrangements with the loan sources, even if its a small sum each week it helps keep your payment record on track as well as preventing further late payment charges and or court action.

(3) Do not apply for any further credit

Applying for further credit will only leave your credit file in more tatters, borrowing lumps of money to pay of other debt will only dig you deeper and deeper into debt. The best thing you can do is avoid applying for further credit, every application you make that fails will leave a footprint on your credit file, this footprint will show other lenders where and why you were refused.

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(4) Obtain a copy of your credit file

If you have problems with credit and or credit companies, then why not obtain a copy of your credit file from our Mortgage website. You can pay a small fee to receive your credit file which will contain all your past credit and the status of unpaid loans/bills etc. Using your credit file you can begin arranging settlements of debts, remember a key fact, a lender would rather receive a £1 a week rather then nothing, so no matter how much it is, try and make payments to help not only you but to help the lender, avoid damaging your credit by shredding those bills and letters.

(5) Manage your finances effectively

A good way to manage your finances is to sit down and work out your in and outgoings. If possible, leave as much funds as possible in your bank/building societies as leaving money in the account will aid towards your behavioural score which is what banks/societies often base their lending decision on. Leaving money in the account rather then your pocket may also help you to curb further spending sprees.

(6) Do not close any old bank accounts

Closing old bank accounts may seem like a wise decision, but remember, opening a new account is subject to a credit check, adverse credit will only make opening an account up in future more difficult. Leave remaining accounts open, why not use them to save a bit away each week, saving is the best option to repair credit as it provides a means a repayment to the loan/lender sources.

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(7) Pay Your Bills On Time

Your payment history makes up 35% of your total credit score. Your recent payment history will carry much more weight than what happened five years ago.

Missing just one months payment on anything can knock 50 to 100 points off of your credit score.

Paying your bills on time is a single best way to start rebuilding your credit rating and raise credit score for you.