A bad credit means a bad credit report and having a bad credit report can never be good news for anyone. Having a poor credit score is a serious matter of concern and therefore it can even affect the mental health of people. The question that arises in our minds is what we should do to improve or rebuild our credit. This article is intended to explain 4 Steps to re-build your credit.
Firstly let us see how A Bad Credit Can Affect You:
If you are of the opinion that your credit score is not going to affect you, it is time to re-think. Enlisted below are some ways to show you how a bad credit can affect you:
☞If you have a poor credit you can waive your loan applications goodbye no matter what type of loan you are applying for. A bad credit history can lead to rejection of your loan applications.
☞Having a poor credit can also influence your chances of borrowing a house on rent as no one likes to rent a property to someone who is financially unstable.
☞A poor credit score also reflects that you have had a poor job history and therefore influence your dream of a better job.
☞Having a poor credit makes you a high-risk individual and thus making you pay higher insurance premium
It’s never too late to fix what is wrong – Read 4 Steps to rebuild your credit
Step 1: Check your Credit Report
You must check your credit report to know how your credit score and status. Read it carefully to know where you have gone wrong and learn from your mistakes. If you find any fraudulent activity report it immediately to improve your credit report and credit score.
Step 2: One-shot payment
If you think you have a lot of payments to be made, you must catch-up with the outstanding amount and try to clear your dues as soon as possible. The way you make your payment speaks a lot about how you manage your finances. If it is possible you must clear all your payments in one go. If you have an existing personal loan, a personal loan refinance, can help you borrow loan at lower interest rate and also avail a top up to meet your overhead expenditure and thus enable you to clear all your dues once for all.
Step 3: Make payments in Time
No matter if it is a loan EMI or your credit card payment due date, you must make sure that you make payments in time to avoid interest and penalties on your existing debt. Not making payments in time will damage your credit further.
Step 4: Think twice before closing credit Card Accounts
Think how important it is for you to close your credit card account. The golden rule to build a good credit history is to have a long credit history. Therefore, if you choose to close your credit card account you may have to suffer from lack of credit history. If you still wish to close your credit card account you must maintain all your past records to have a proof of credit history.
Learn from your mistakes and Rebuild Your CreditMain Category: Credit Cards, Finance