Are you tired of being turned down for loans and credit cards because of your credit? If so, maybe you should start working on your credit to turn it from bad to good, and you could begin by applying for a personal loan. Getting a personal loan could solve a variety of problems you have with your credit, and here are several tactics you could use to improve your credit score.
Use the Proceeds to Pay Credit Card Payments
One factor that might be lowering your credit score is the ratio of money you owe on your credit cards to the credit lines you have. This is called credit-utilization rate, and it makes up 30% of your credit score. By borrowing money through a personal loan, you can use the proceeds of the loan to pay off your credit card balances.
Once you do this, you could instantly drop your credit-utilization rates on the cards. Credit bureaus prefer seeing ratios of 10% or less, so you should aim to pay off as much as you can with the proceeds from your personal loan. After doing this, you may see a significant increase in your credit score.
Make Credit Card Payments Before They Are Late
A second way to use the proceeds is to pay your credit card payments before they are late. If you experienced a lot of extra expenses this month and do not have enough cash left to pay your credit cards, use money from a personal loan.
Your payment history greatly affects your credit score. In fact, 35% of your credit score comes from the history of your credit card payments. Failing to pay just one credit card payment on time could jeopardize your credit history. Why let this happen when you could apply for a personal loan to prevent having a late payment on your credit report?
Clean up Your Credit Report
If you are trying to improve your credit score, you probably have a copy of your recent credit report. If you don't, get one. You can do this for free through annualcreditreport.com, and you will instantly have access to your report online.
As you look through the report, look for errors. An example of an error is a debt on your credit report that is not yours. If you find errors, dispute them. All three major credit bureaus offer dispute procedures, but each may have slightly different requirements for completing a dispute. You may also need to dispute each error with all three credit bureaus, and this requires completing three separate dispute requests.
Secondly, look for unpaid debts you forgot about or did not know about. Credit reporting bureaus often list accounts like this as derogatory accounts, collections, or public records. If you have any debts like this, use the money from the loan to pay them off.
Paying them off will not remove the accounts on your credit report, but the credit reporting bureaus must mark the accounts as "paid." Paid accounts generally do not harm credit scores as much as unpaid debts.
Apply Today for a Personal Loan
Applying for a personal loan through Central Finance
is easy and fast. The best part about this is that your credit score does not play a role in your approval, and you will not need any collateral for the loan. If approved, you may qualify for a loan up to $1,340. Imagine what a difference you could make with your credit with this much cash.
If you are ready to boost your credit score, or if you need money for any other reason, contact Central Finance today to learn more about the application process.
