Your credit trade line credit score is the benchmark all of the credit lenders are going to use to access your repayment trends. This is one of the most important factors the lenders see before thinking to grant you something, because they need to see what are the chances of them getting paid back on the due time. The higher your credit scores, the more you are likely to get a loan at favorable terms and a lower interest rate.
But what to do if your credit score has already been deteriorated due to some pending payments? What is the best method of credit sweep/ credit repair? Here are some of the tips you can act on to avoid a bad credit, or fix it if it’s already low.
Pay Back On Time;
This one is a straight forward step. Since your credit score deteriorates due to late repayments, you can improve it suddenly by staring to back on time, this will also help you maintain the interest rate low. Just remember all the important dates and never miss your repayments.
In addition to all the credit bills, you can also pay your telco, electricity and gas bills on time and later get them added into your credit score. This is one of the best ways to improve your trade line for bad credit.
Keep Your Credit Low:
Another method of avoiding a bad credit score is just avoiding the credit itself. Don’t take a loan for every other thing. You need to access your budget and buy the things that suit your lifestyle. You an keep your credit utilization ratio low by taking less credit. And these type of borrowers are often granted loans fast. For a perfect credit score, keep your credit utilization ration below 30% as lenders love these numbers.
Don’t Open Credit Accounts Unnecessarily:
You shouldn’t open multiple credit accounts just because you want to have more credit options. Instead, you should keep this fact in mind that having multiple credit accounts can tempt you move in buying useless things and can eventually strangle you into a debt trap. So, never go for multiple cards, because instead of improving your credit score, this move might end up ruining your credit trade line and can result in a bad credit.
Never Close Unused Credit Cards:
If you already have multiple credit cards and are now looking to close them because of their inactivity, you better not close them. Because having multiple accounts but only using some of them can rapidly increase your credit score and might result in a credit sweep.
Dispute The Incorrect Information:
Another thing that can silently drag your credit scores down is the incorrect credit information listed on your credit bills. So, regularly get your bolls from major credit info providers and dispute any listed information that you think is incorrect. Never ignore this type of errors as they can easily ruin your credit trade line.
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