If you are thinking about applying for a loan but wondering whether or not you will qualify for it, this post is a good read for you. Here’s why we say this. Firstly, if you have bad credit, the good news is that you can still qualify for a loan. Yes, there are so many websites that now offer bad credit loans. So, whether you have bad credit or zero credit history, you can get your loan application approved.
However, it is always best to keep working hard on improving your credit score. This is because a good credit score makes all the difference in securing a loan at a great rate and on favorable terms. So, if you want to go from bad credit to a good credit score, then follow the tips shared below:
Pay Bills Timely
Although late payments on credit bills may seem little, they can make a huge difference in your credit report. Therefore, it is crucial to get on top of these things as soon as possible. Therefore, first things first, pay your dues on time without delay. Consider setting up automatic payments to your creditors and utility providers. This can make a positive and significant impact on your score in the long run.
Check Your Credit Report for Inaccuracies
It is worth checking your credit report frequently to ensure all the information listed is accurate. This is because sometimes credit reports are not updated. These inaccuracies can have a significant impact on your overall credit score.
Some of the potential credit report inaccuracies include:
- Duplicate debt listings and incorrect debt amount
- Repayments are not recorded
- Debt you did not take out being shown. This usually happens as a result of identity theft and fraudulent activities.
As you cross-reference your credit report against your financial documents and bank statements, you are likely to spot inaccuracies on the credit report. Once you identify inaccuracies, immediately contact the credit reporting body to amend them in your report. This will truly help you improve your credit score. You can contact all three Australian credit reporting bodies such as Experian, Equifax and Illion.
Hold on To Your Credit Cards
If you have credit cards, hold on to them and pay them off each month. This can actually benefit your credit score greatly. Prompt payments on your credit cards can help demonstrate a positive repayment history and improve your credit score.
However, it is important to understand that building up debt on a credit card is easy, translating into a high-interest rate. Furthermore, if you miss them, it can negatively affect your score. Therefore you have to be extremely careful with credit card repayments to establish a good credit history.
So, if you wish to improve your credit score, make sure to follow the tips we have shared with you above. These will help you go from bad to good credit in the fastest possible time—making it easier for you to qualify for loans on favorable terms and conditions.