Strategies to Improve your Credit Report
A positive credit report helps one to secure loans, get low interest rates or even new employment. Here are some strategies to help an individual build a positive credit history.
- Repay Loans on Time: It is very important to repay whatever money you have borrowed, on time. Failure to do so will put a negative history on your credit report, and this can cause future loan applications to be denied. If you have taken a loan, ensure that you pay at the agreed time.
- Only Apply for a Loan when it’s Needed: It will be unwise to apply for a loan to finance a ceremony, or something that will not bring in revenue to repay the loan. If you have to apply for a loan, and you want to be able to repay it easily, ensure that whatever you need it for will bring in enough money to repay the loan.
- Correct Inaccuracies in Your Credit Report: This is one of the fastest and easiest ways to boost your credit report. If you spot incorrect information, you can initiate a dispute and potentially have it corrected or removed within days. CRC Credit Bureau Limited has an effective dispute resolution process.
- Avoid Excess Enquiries: Every time you apply for a credit card or any type of loan, a potential creditor will make an inquiry with two or more of the credit bureaus. This inquiry information gets added to your credit report and will remain listed for two years. If you have multiple inquiries in a short period of time, this can reduce your chances of receiving loans because lenders will assume that you have been going around different places asking for loan which they are not sure you can repay.
- Choose a Debit Card Over a Credit Card: Some financial non-financial institutions offer credit cards. A credit card is a card that lets you pay for goods and services with borrowed money. Whatever you spend on this card will be repaid by you. A debit card however, contains your personal money, saved in the bank. You will want a debit card because when you spend from it, you are not repaying to anyone.
- Avoid bankruptcy, if Possible: An individual or Company files for bankruptcy when they can no longer afford to pay their creditors. In a situation like this, prospective creditors will not want to give them loans because there is evidence that they may not be able to repay, since they were unable to repay previous loans