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How to Improve Your Credit Rating?

Improving your credit rating is the most important thing to do if you want to apply for any sort of loan. Having a bad credit history would drastically limit your chances of getting your loan approved by the bank. Banks all over the world ask for your credit history before any decision on your loan application is made. In case your credit history is good your loan is approved and you can also get some leverage too. On the other hand having a bad credit rating would mean that you have to constantly clarify any problem before the decision is made on your application.

1.      Improving your credit history

There are a few ways to improve your credit rating. The first one is the simplest one. You should pay your debt on time. This means if you have a credit card and have used it to buy something then you must pay back the entire amount back to the bank within the due time. In this way, there is no negative impact on your credit rating. Moreover, any debt which is still unpaid or any loan which you have taken from the bank should be repaid as soon as possible. All these points are indicative of your credit history.

2.      Rectification of errors

If you become aware of any errors in your credit report then you should rectify it as soon as possible. It is not an easy task and that is why you should seek help from mortgage companies. These companies have the necessary experience in the field and can easily work to rectify any mistakes in your credit history. Another thing that affects your credit history positively is not closing any bank accounts. If you close your account which has some withholding amount to be repaid or abruptly close many accounts then it would also affect your credit ratings.

3.      For business holders

If you are a business holder and are going through a rough patch then a lot of people file for bankruptcy. This helps them in the short term but in the long run this completely messes with your credit score. So, if you are going through rainy days with regard to your business then try your best to avoid calling for bankruptcy. This would ensure that you do not have any problem in filing for and approval of new loans. These are some of the ways in which you can improve your credit rating.

Sources

http://www.veda.com.au/yourcreditandidentity/tips-mythbusters/faqs/how-can-i-get-good-credit-score

http://members.optusnet.com.au/~crefin/rating.htm

How to Improve Your Credit Rating? was last modified: March 31st, 2014 by Tammy Richards

Author:

Entrepreneur, writer, and marketing expert. Would like to share my experience and knowledge with Australian business owners, especially small businesses, and new starters.

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