Featured Image Caption: Loan for People with Bad Credit
You and your partner just came home back after seeing a brand new property where you two are planning to live on rent. Well, that’s good news indeed, but you might want to check your credit score first. Yes, you heard it right! Basically, when you apply to rent a property, the owner of the property will go through several background checks before handing over the keys and you would be surprised to know that whether you will get the property or not is very much decided by your credit score.
Now, you must be thinking that “so, I cannot get a property if I don’t have a good credit score?” Well, that depends on how bad your credit score is. If you have a good credit score, then you will get more benefits as a tenant than the ones with a bad credit score. So, you see finding a property to live on rent is not that easy than you might have imagined. Even if you find the right place and manage to arrange the deposit, there will be still a chance that the owner will cancel the deal.
Thus, it is enough you to make you realize the importance of having a good credit score. If you are also struggling with the same issue, then you no longer need to worry. Here, we have prepared a list of tips and tricks that can help you improve your credit score. Now let us see have a look at them one by one.
Amazing tips to boost your credit score:
1. Kill the bill
The bills play a crucial role in determining the credit score of the person. If you will see the credit report of a person who has a good credit score, you will hardly see any due payment. Such type of person gives priority to their bills and rents and they ensure that all dues are cleared. Now same way, if you will see the credit report of a bad credit score holder, you will find plenty of unpaid bills, due payments, late payments and old debt that are continuing for a long time.
2. Apply for a new loan
With your credit card hitting the rock bottom, you will think a person as nothing but a fool, if he suggests to take a new loan. Well, that person is right because there are many people take a new loan in order to get rid of their old debt and complete the due payments. Getting a loan from banks or credit unions can be really difficult if your credit score is poor. However, you can go for other options e.g. very bad credit loans with no broker involvement. You can directly have a word with the lender regarding the loan.
3. Keep a balance in your credit card usage
Most people use their credit cards buying unnecessary stuff and spending more than they can chew down. This way people without realising starts damaging their credit score by spending the money which they don’t actually own. Therefore, try not to use your credit card up to its maximum limits as it can affect your credit score. This doesn’t mean that you should reduce your credit card usage by 0% as it will not going to help either. Try to maintain the balance and keep your credit card usage below 50% and keep paying the amount on time. This will make the lenders believe that you are a trustworthy borrower who have the potential to repay the amount.
4. Try to plan before thinking of taking a new loan
Lastly, from next time when you thinking of taking a new loan either with a guarantor or no guarantor, so it is better that you plan everything from the beginning. Before applying for the loan, you can go through your credit report and see if there is a room for any improvements. Pay the bills and rents which are due as it will help in improving your credit score and will also further increase your chances of being approved next time when you will be applying for a new loan.
By carefully following all the tips mentioned above you will witness a higher jump on your credit score.
By Nicole Dickson
who was born and raised in UK. She is now among the top financial writers, working efficiently for First Finance which provide loan for people with bad credit, a fastest-growing FinTech lender. Nicole is a blogging expert and writes regularly on top blogging platforms.