Whenever a customer applies for a loan his credit rating is one of the deciding factors for the loan to be sanctioned. Hence a good credit report is a must. In case your credit rating is not so good you can take certain measures to improve it.
- On time payment of bills: Most of the bad credit ratings are due to untimely payment on one’s account. A customer has to make it a practice to pay his bills on time. Any payment which reaches the creditors after 30 days of the payment due date is reported to the credit bureau. If you are going to be late with your payment pre inform your creditors so that this late payment is not reported to the credit bureau.
- Reduce the number of credit cards: The credit rating is affected by the amount of debt in a person’s name. One must try to pay off major amount of debt in his name and in case he is not using some cards they should be cancelled. A customer can call up the card company to reduce his credit limit. These measures will show a positive impact on your credit report.
- Take a small loan: You can try to get a small loan in your name. Otherwise you can ask a friend or a family member to co sign a loan with you, this you can pay in time and hence re establish your credit.
- Secured credit card: Acquiring a secured credit card is also a good way to re establish your credit. You will have to deposit a certain amount of money to cover your card charges with the creditors. Making payment on time will help you get a better credit score.