A good credit rating is vital to your financial goals. Because a higher credit score means you are carrying less risk; which is a good thing for lenders and banks and institutions that provide financial support. When your credit falls, the banks perceive you as a risky customer and are reluctant to give you credit. Consumers with a high credit score do not vouch for fast loans, while consumers with bad credit records need to vouch for their credit. Sometimes banks may not give credit even if they meet the guarantee requirement for consumers in risky groups.
So, how to raise the credit score? Here's a 5-step credit rating upgrade …
1. Close Your Teams
The first thing you need to do is turn off your credit takers and your late payments if you have to make them regular. Banks do not usually give credit to those who follow current credit. Besides, the high level of your debt ratio according to your credit limit and the delays you are experiencing negatively affect your credibility. It will help you to combine your debts in one place and to pay your monthly installments.
2. Investigate your Credit History and Close Accounts That You Are not Using
I do not have to pay my credit card, I have a history that I need to investigate if I'm paying regular but the credit skorum is still low. You might think that a bank card you have closed may have accumulated usage costs, or you may have paid out of sight, such as an expense you think your insurance pays. In this case you can check your credit history by going to KKB (Credit Registration Bureau). On the other hand, the bank accounts you do not use may also be a barrier for you. Even a small account holder, a debt or account operation fee, can be folded over time and negatively impact your credit score for not paying. Therefore, clearing accounts that you do not use to clean up your debts will affect your score positively.
3. Do Not Say "I Did not Use Credit Cards Before, My Score is High"
You may think that your score is high because you do not use a credit card and therefore you do not have any debts. But in the eyes of the banks you are an uncertain customer and you do not yet have a credit score. You can build your credit score and start to improve in the positive direction by taking a credit card that the banks give you with easier terms among the individual loan products, paying small and regularly.
4. Pay your bills on your credit card
Paying your bills with your credit card is actually the easiest way to influence your indirect road score positively. This is because you have to pay regularly. It's a practical solution to raise your score and a way to make your account easier if you pay your bills from one place.
5. Do not Make Frequent Loan Applications
One of the most common mistakes made by the consumers is short-term loan applications. If you need urgent cash, you can move away from the loan you need if you apply to all the banks in turn or if you get rejected from a bank and apply to several banks. Banks can also look at the applicant's past credit requests when examining loan claims. A person who has recently applied to many banks is perceived as having a low creditworthiness in the banking, so that the banks are looking colder to grant credit to these people. It would be of interest to compare all the banks and select the bank that is right for you, instead of making loan application to many banks in the same period.