When it comes to embarrassing life moments, standing at the counter surrounded by other customers and being rejected for credit is right up there on the list! Left standing with nothing to do except walk away from the cashier empty-handed.
If you have experienced this more times then you would like then you have likely never returned to the store and have been afraid to apply for credit again.
And while this may help you avoid the trouble in the short term, it doesn’t help to address it in the long term. Below are some great tips to help you improve your credit score and creditworthiness.
The last thing that you will think about getting is another loan. However, the idea behind this one is different. A debt consolidation loan works by transferring all of your existing debt and lots of credit into one large debt. The primary benefit of doing this is to give you one monthly payment which can you easily manage, without having to try to send small payments to a number of credits each month.
If you take up this option, be sure to read the fine print. Many credit companies will offer you a low transfer rate for bringing your debts over to their service, however, this is often only for a short period before the interest rate rises again. When you are applying, ask the question.
Create a Realistic Budget and Stick to It
Creating a budget is one thing, creating a realistic one and sticking with it is quite another!
Instead of stretching your dollars out too far, be sure to include life items in your budget so that you don’t feel bad when you spend on personal items. For example, consider setting aside an amount each month for you to enjoy entertainment or to buy yourself something new from the Groupon Coupons page for Buckle. Whatever you enjoy doing, be sure to allow for a small amount in your budget each month.
Don’t Be Late!
Your credit rating is made up of more than just how much money you owe. It is also based on how often you are late with your payments.
The best way to avoid this is by switching to direct debits so that you don’t have the chance of being late with your payments. If this doesn’t work for you, consider another system which can remind you to make your payments on time. Remember that it only takes one late payment to tarnish your record and reduce your credit score, so be sure to stay on top of your monthly expenses.
Improving your credit rating isn’t something which you can do overnight, but it is something you can do by following the tips above and staying mindful of your finances. In addition, speak with friends and family about how the mange their money and ask for any advice they can offer to help you improve your credit score.