During financial emergencies, loan rejections are like heartbreaks. You cannot avert it in most cases when your credit scores are less than perfect. Loans become expensive even if you get a chance to borrow despite these setbacks.
Poor scores can make your financial life more challenging. Because of these scores, you cannot enter into a contract for a mobile phone. The landlord might question your credibility as a tenant. As a result, you will have to accept rejection.
A positive credit history can make a whole world of difference. Getting better and competitive rates is effortless with stellar credit scores. It means you can be in an advantageous position with a good credit rating.
Upgrading your credit scores is a necessity for you now. The good news is that you can easily make up for your scores with the help of a few easy steps. Please note that a sudden leap in your credit improvement journey might not be possible.
However, this blog presents you with some of the effective ways to fix your credit scores.
Acknowledging the reality of credit scores
From a lender’s perspective, credit scores are parameters to decide if you should get approval for loans. They represent the way you have managed payments of different forms of credit. A review of credit history will leave an impression of your financial potential in the lender’s mind.
The lending criteria of different lenders could be different. Some of them might be too strict while some might give some liberty. How lenders will view your credit scores is completely their call.
Uncertainty reigns when you have a blemished credit history. Improving your credit stature can give momentum in your financial life. It will also make you more reliable for the loan providers.
Straightforward ways to start the credit improvement journey
The best tip to save time and upgrade scores is by knowing the right steps. Luckily, you will find them here without doing any extra legwork.
1. Settle all the due balances
Preferably, you should leave no traces of dues to take a step towards credit upgradation. With poor scores, beating such a target might be difficult. You can contemplate getting a small amount of loan in case you do not have a secret cash reserve.
Direct lenders can offer different types of relaxations. Any loan from them can help you to take positive steps towards upgrading your credit scores. Choices you can have are:
Bad credit loans: A bad credit loan can prove to be your saviour in this situation provided you are aware of its cons also. Before getting any loan option, determine the amount of debt you have accumulated so far. Clarity on the requirement lets you make sure how much you should borrow.
Payday loans: For petty needs occurring between salary days, you can have an effective resort like a payday loan. Be aware of the APR fees and rate of interest (4.99%) so that you can borrow within limits. Extending the limit will make repayment burdensome for you.
Doorstep loans: Reap an additional benefit of a home credit facility with these loans. Allow the loan agent to visit your home twice when you will submit the application and receive the approved sum of the loans. No need to have access to a bank account to get money after approval.
Guaranteed loans: It is not like getting access to loans straightaway after application. These loans rather emphasise improving the chances of approval. Beat the affordability criteria to be closer to guaranteed approval.
2. Check if your credit report reveals correct information
Blindly believing what your credit report unfolds would be foolish. You must check your credit scores from time to time. It is not a difficult task as you can easily extract free reports twice a year.
Keeping track of your scores is in your hands as provisions for this are available for you. Any unknown mistake can even cause damage to your credit history. Do not keep them unnoticed or else your scores will not improve.
Regular checking of your credit profile will help you spot any errors. You can even point out any unrecognised activity in your credit records. Then, you can report this scam immediately.
This immediate action will follow only when you will notice this activity. It will not be possible if you do not monitor your credit records with time. Besides, this regular monitoring gives you an opportunity to correct any wrong information in the credit report.
3. Apply for Voter ID
You must get on the electoral roll or else the credit reference agencies cannot review your identity. Validate if it is the reason for your blemished credit history. Lack of identity straightaway affects the reliability factor.
Registering to vote would mean you would have to share some concrete information about your own self. It would include details about your current address. In this regard, if you are someone who changes locations of stay frequently, it will imprint a negative impact on your credit scores.
The lenders usually require such type of information before accepting your credit applications. Make sure you have registered to vote and all details concerning your identity are correct.
4. Avoid hard search on your credit profile
How can you do that? You will have to face this type of search when you will make a credit application. The number of times you will send out a request for a new loan, you will have to undergo this assessment.
Your credit profile records information about these checks. Such attempts made within a short span can be disastrous from a credit score perspective. One thing will be evident to the lender that your financial state is unstable, as you need loan assistance too often.
Instead of directly applying for loans, you can check-on the rates by utilising the pre-approval facility. It can save you from the consequences of hard checks. This provision just needs a soft verification of your financial profile.
5. Be mindful while making your life decisions
Having a calmer mind to make vital decisions in life is crucial. You cannot be in a sprint to decide if switching the job out of frustration time and again is justified.
Maybe, in some scenarios, your reasoning will work. However, frequently switching jobs after every six months do not establish the stability of your mind. Rather, it will portray you as an indecisive and unstable person.
This could be a reason behind rejections from multiple lenders. It will have a grave impact on your credit scores. Prevent yourself from walking in this route.
The bottom line
Bad credit is not a dead end but rather a turning point from where you can improve for a better financial future. By now, you are aware of the ways that can assist you in gaining back the lost stability in credit scores. Pursue these steps carefully for the improvement of your scores.
Meanwhile, you might need urgent financial assistance to cope with unforeseen circumstances. QuickLoansLender can support you during this tough time. You need to be optimistic and consistent in your credit improvement efforts.
Loans can only be a temporary way out of any financial problem, you might be facing. Rectifying the credit scores is the only effective way to get rid of the bad credit problem permanently. Therefore, do not think that your financial situation can improve completely with loans.
Emma Anderson is a financial advisor at Quickloanslender who always believes in researching hard to know her clients’ financial problems. She takes the time to understand their financial wants and needs to write the blogs on them as the solutions. In her long 14 years of experience, she has written plenty of blogs on the financial and business sectors of the UK.
Emma Anderson has been recognised for her work in financial planning and her blogs are regularly published in the website of Quickloanslender. As far as her educational qualification is concerned, she has done Masters in Accounting and Finance, and done PG Diploma in Creative Writing.
