Your financial status is a puzzle and just like any other normal puzzle each right piece brought together makes the perfect picture similarly your credit score is a very big piece of this puzzle.
If this piece went wrong you can possibly face a lot of problems in many aspects one of which is getting loans.
We are almost half way down with this year and there might be a lot of people who would be wondering as to why did their loan got rejected or why are they facing so many hurdles in getting the loan?
If you are facing this problem then a reason might be your low credit score. And if you want to make it better then, my friend you are on the right page.
Here are 8 ways that would surely help you to improve your credit score in 2018.
1. Know your credit report
Most of us are too lazy or unaware of the fact that they should keep a regular check on their credit report.
Credit report is used not just for the loan approvals but for credit card approvals as well.
Those who are repaying a loan or making some other payments to their bank, they should always be been in touch with their credit score.
For those who don’t know, getting your credit report is easier than you imagine and it can be checked even on your mobile on the go.
At regular intervals keep asking your report from the credit reporting agencies. It is totally free and a quick process.
2. Make some markings
Making a mark or leaving some remarks after thoroughly studying your report will always be helpful. Point out the errors and mistakes (obviously if any) and see in the report that what has made your score dip.
Sometimes it can happen that your bank has some wrong information or outdated information which has tampered your creditability.
So if you are in a regular touch with all your reports you might be able to pick up the problems and work in the right direction to make things right and increase your credit score.
3. Be patient
Patience is the solution of many problems. Every time you get impatient you might do wrong to yourself than good.
If your credit report is seriously dipping then don’t just start stressing yourself up just relax and start making things right. It takes time to get your reputation back but it will be better.
Who knows this might kick-start a new side of yours like you would start making a budget for each month and start using your money judiciary.
You would then be able to get back your financial reputation back. Moreover, your report does not speak everything about you. Everybody has their ups and downs, just walk this phase thinking that it is your down and you have improved the condition. Therefore, it might be possible that for improving your score all you need would be a disciplined you.
4. Fix your late payment
See there are fair chances that your payments and dues must be delayed from your side. Each delayed payment will stain your score deeper and darker, so always avoid repaying your loan late.
Moreover, if you think that closing an account will be the solution then I must tell you this will negatively affect your score.
The only right thing that you can do is check all the bills of your credit cards and make a reminder for yourself on the dates when their EMI’s are deducted from your account.
Start keeping a track on them and keep managing your cards and liabilities payments. Do check all your deadlines and then set your schedule.
Doing something on assumptions would again wrongly affect your score.
5. Pay big first
It is always obvious a big chunk is always better than small portions. So, when you rack up debt during your shopping and festive seasons, then paying a larger amount later is the best way to boost up your credit score.
When you repay the balance in the credit card dips your credit score will automatically swell up.
6. Work the small balances
See I might have directed you to first pay off your big balance but if there are too many small portions scattered in different areas then all together they will be a big chunk, so don’t neglect even your small balances.
If you are not able to pay off a large amount just eliminate your small debts. This will show your wit and heal the tampered credit score.
So, you might have a solution to your problem. If you can pay off all your small bills then do it first, don’t wait for the big one to be paid first.
7. A personal loan can be beneficial
Here, this might help you if none of the above-mentioned solutions could. It would not be a bad option to take a personal loan to pay off your existing debts.
What Say? One way to boost your credit score when you aren’t able to pay your bills is to take a personal loan against yourself.
With this, you could pay your debts and on the other hand, your credit score will also increase a lot. A personal loan will hit you financially, true! But when it comes to your scores, it will not hamper it.
A personal loan is known as an installment loan and it is not considered while calculating the credit utilization ratio. Is this of some help? Yeah, obviously it will be.
8. Taxes should be off your report
In some banks, it happens that when you fail to pay your taxes the federal government will file a lien against your name. This is more of a tax lien which will hamper your credit score.
These tax liens are no easy going stains they hit you hard and last really long. So, a wiser person would not let that happen to him in the first place and even if that happened.
He would pay off the lien in the first place. So, I think these 8 solutions would surely help you out in some of the other ways.
Vipin is a Programmer who loves blogging and used to do research on new things. He loves to share those information through this blog. You can contact him via email [email protected]