If you want cheap loans, there’s one surefire way to find it. Start by fixing your credit score if you have bad credit. When you’re in the market for a personal loan and you have a less than perfect credit score your application will either get rejected or you’ll only be eligible for deals with steep interest rates. To stop being at mercy of your credit score, fix it now by following the following tips and tricks:
Check your credit files and report errors
One of the first things you should do if you’re trying to fix your credit score is start from your credit files. Request for your credit history data and Double check your files for errors or any type of inaccuracies. A minor or major error for that matter when fixed as soon as possible can do wonders for your credit score. Have it reported immediately if you find any.
Try to negotiate with your creditor
If your credit score was hit badly because you were unemployed at one point, putting your negotiating skills to the test may help. You can speak with your creditor and request to consider erasing your debt that was transferred to collection. If you have valid reasons why it happened, chances are high that your creditor may agree. Of course, you’ll still need to make arrangements to pay for the debt.
Get a credit card
Contrary to what some experts suggests, you’d want to apply for a credit card if you want to improve your credit score. So long as you’re not overcharging on your credits cards, having one to two cards may prove helpful for your credit score. Since you have bad credit, however, it may be difficult to get approved for a traditional card. In this case, you may want to check secured credit cards or options offered for people with bad credit. In any case, the trick is to be a responsible user all the time.
Apply for a credit limit increase
If you have existing credit cards, one trick you can try is to request for a credit limit increase. The credit limit increase is a sign that you’re being a responsible user. A credit increase, however, is not a sign for you to increase your spending. Like before, you need to underuse your card. Ideally, you should keep the charges at 30% or below of your credit limit.
Pay your bills on time
When it comes to fixing bad credit scores, nothing beats paying your bills on time. Because 35% of your credit score is about your payment history, one of the best and fastest ways to boost your score is to make sure that all payments are on time. That includes payments on your bills, personal loans and especially credit cards. Keep at it for 12 months or longer and you’ll see significant improvements on your credit score, which will then lead you to find cheaper and better deals without hassles.