Whether it was for a new cell phone contract, a new kitchen appliance, or even a new car; if you have been denied credit at the point of sale then you know just how embarrassing the moment can be. After all, you are left standing in front of the cashier without any payment options.
If this has become a familiar experience and you are looking for ways to change this, below are some great tips you can follow to help improve your credit score.
Wrap It Up!
If you have a number of small debts from a range of creditors then there is a very powerful change you can make. Consolidate them!
Whether it’s a store card, credit card, or personal loan, speak with a lender about obtaining a debt consolidation loan. While this won’t reduce the amount of debt that you have, it will simplify your credit report and help make you an ideal candidate. The reason for this is that creditors can become nervous about multiple debts, as they aren’t aware of how much each requires. However, with one large debt, your credit situation is clearer.
An important note for this tip – if you do consolidate your debts, be sure to destroy your existing cards so that you don’t continue and dig yourself into a deeper debt hole.
Stick With Your Budget
If you can show a lender that you have been sticking a budget to minimize your expenses then this can drastically improve your credit worthiness. History of saving a set amount out of each salary payment is a powerful message to send to a lender that you are aware of your financial obligations are committed to repaying them.
When creating your budget, it’s important that it is achievable. If you set your sights too high and you aren’t able to save a constant amount, it can work against you. Instead, plan for things which you know you will want to do, such as setting aside entertainment money to use on the Groupon Coupons page for Fandango or a gift voucher for a local restaurant.
It’s More Than Just the Amount
How well you score on your credit rating doesn’t just depend on the amount of debt that you have. It also includes your payment history and personality. For example, if you are always paying your bills late then this will be reflected in your credit report and score.
To avoid this, speak with your utility and service providers about establishing a direct debit payment system, where the bill is paid in full from your nominated account or card on the due date. This is a great way to boost your credit score and make you a more appealing client.
Repairing your credit history and score isn’t something which you can do overnight, however, it is something which you can do by following these tips. In addition, speak with your friends and family about the ways in which they manage their money. While money was once a taboo subject, in the current economy, everybody is looking for new information and advice on how to make the most of the money they have.