We often blame our credit status when our loan application got rejected because of our records. This also applies after we found out that our mortgage loan didn’t go through. It is understandable and you might be right, we this has something to do with our credit standing.
Repairing your credit might be the best solution for a higher success rate of our loan applications. Now, many people don’t actually know how to do this, so we are here to help.
Commonly, people resort to a credit repair company where they get professional advice and assistance when it comes to their status. Most of them are not free so most people look past this option.
Another alternative is doing the lists below. These steps can be beneficial to your credit standing for you to get a better chance of getting that one major loan or the mortgage loan you are aiming for.
Keeping the Same Address
Changing address more often can have a direct effect on your status. Lenders can view this negatively and you might appear as a higher risk to them since you’re changing address more often.
Since lending firms do not know you on a personal level, they will rely on the paperwork and the records under your name. If you have a low credit score and you change address every year, even if you have a valid reason for it, they may a notion that you are a financial risk to them and this could greatly affect your application.
Use your Credit Card
Regularly using your credit card will help fix your credit standing, given that you are managing your balance without any late payments. Paying your bills for your credit card before the due date helps you build up a good credit history and will also make you a responsible payer in a lender’s eyes.
It is also recommended to have a reminder to minimize any possibility of overlooking any due dates. It might b also helpful if you are using multiple credit cards. This means there are other reports ready if you are presenting your credit history.
However, if you’re looking to applying for multiple cards at once, you might want to lay low for a bit. Credit card application requires you to go for a credit check and doing this leave a mark behind your credit report. If lenders see multiple credit report request under your name in a short amount of time, they might tag you as a high risk so keep that in check.
If you have an old credit card with you and you’re not using it, don’t close your account. Closing your account might also lose your records along with that card. You might be losing a credible credit record by closing your old and useless credit card assuming you got a good history in that account.
Stick to Your Budget and Save More
Managing your finances start from our home – In other terms, our household budget. Many financial experts recommend to have a plan with our expenses and stick with it.
Managing your household budget and strictly following your rules can bring excellent results. You’ll be surprised that you are more responsible when handling your financials and will give you extra money for your savings.
Allocating your budget in advance will give you extra room to make changes. Just be sure to stick with your plan no matter what and you’ll be hitting two birds with one stone- your budget and your extra savings which is great!
Cover Photo Credits: Consumer Report