Awakening Africa Magazine

Finance

Top 10 Ways to Make a Bad Credit Score Better

2 Mins read

Credit binge, not paying the payable amount on time, and several other factors can result in a bad credit score. Fixing your credit score is critical as a bad credit score can prove to be an obstruction for many things like a loan approval. So, how do you fix a bad credit score? Let’s take a look at the top ten ways that can help in fixing a bad credit score.

1.      Review your credit history

You should know what’s wrong to fix it and make it better. Reviewing your credit history can be an excellent step as it will highlight all your past buying and splurging behaviors. Highlight the unnecessary buying and stop doing that in the present and future.

2.      Check your bill payments

There are several loans that, more or less, all of us have to take, like a student loan, car loan, or mortgage. You must be paying all your debts on time. It can help in avoiding a bad credit score. Make sure that you have scheduled all your debts and bills to be paid on time.

3.      Fix your current account

Most lenders will base your current account as the main source for their lending decision. So, your current account should be in order. An in-order current account translates as payments made on time, no excessive buying patterns, and some idle money sitting in the account.

4.      Deal with negative equity

Make it your priority to deal with an underwater mortgage. A good idea is to wait for the market to rise. However, not everyone has the luxury of time. So, if your finances allow, pay more than the allocated monthly amount to get rid of your mortgage quickly.

5.      Get rid of the extra credit cards

It is time to lighten your wallet full of credit cards. You must clear all your outstanding debt before you apply for a loan. Banks require credit card statements, and debt on these statements will not work in your favor.

6.      Stick to a weekly budget

Budget your spending and allocate some amount for your expenses each week. Take the amount out in cash and stick to it. Banks notice the 1 am ATM withdrawal as well as the impulse buying history at brands outlets.

7.      Catch up on previous payments

Lacking behind on past bills is often among the reasons behind a bad credit score. So, fix all these payments and bring them up to date.

8.      Never miss another bill payment

 A missed bill payment goes a long way in hurting your credit card score. So, make it your mission to pay your credit card bill on time.

9.      Setting up automatic payments

Set up automatic payment of your bill at the start of each month. So, you never miss another payment deadline.

10. Track your credit score

Tracking credit scores will give you in-depth insight into factors that play a negative role. So, keeping an eye on the credit score will give you insights into factors increasing it.

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