“Rome was not built in a day, but they were laying bricks every hour.”
This French proverb reminds us that time is needed to create or achieve something great. And that is absolutely affirmative, it takes a lot of time, sometimes months, sometimes years, to form a habit. Everyone has to start small and has to concentrate on improving at least 1 per cent with each passing day. So, is the case with a credit score. A bad credit score cannot be improved overnight.
A credit score takes into account years of past financial behaviour that reflects in your credit report. Your credit report doesn’t only take the current financial behaviour into account, but it also takes the past behaviour shown by you towards your finance. And that’s how we end up with a ruptured credit report.
However,“Better late than never”. You can start following some basic and simple steps to improve your credit score. But remember, patience is the key. You need to have a lot of patience to attain a stellar credit score. People have often compared the repairing process of credit score to losing weight. Yes, you need consistency and patience over the years to achieve the desired results.
We are humans and in this fast-paced world, we want to achieve everything that we wish for quickly, in a blink of an eye, however, certain situations can trap us as well. You must have come across numerous advertisements, which shouts to repair your credit score instantly. It is suggested and advised to avoid such traps, as these quick ways can backfire against you. Now the question is why should one have a good credit score? What is the need of having or maintaining a good credit score? A good credit score is extremely crucial, as it can negatively affect your ability to borrow money or to access certain essential financial products such as loans, and credit cards. These financial products have a bad reputation in the market. But if used judiciously and managed responsibly, it can be a great advantagefor you during your bad times.
How can you boost your credit score?
- Review Your Credit Score First
First and foremost, go through your credit report meticulously. Look for the repayments that you miss outupon regularly. Make a strategy for it and start paying off those bills on time. It’s never too late to start over, once you know where you stand, then it will be easier to move ahead on it. Start catching up on the past due bills, these cause the most damage to your reports. Use a different source of credit for the different needs you have. This will enhance and showcase your capability to handle these funds as well. Once you get these things get back on the track, just carry on with this new-found sense of responsibility towards money and financial liabilities.
“Some debts are fun when you’re acquiring them, but none are fun when you set about retiring them”-Ogden Nash
- Look for Associations Which Hamper Your Financial Image
Your financial associations can hamper your image or the credit report. You may have linked your account with this unreliable person in the past and due to his mistakes, you will have to suffer as well. Well, not anymore, just cut the cord and handle your expenses yourself. This would save your profile from the contagious poor credit of the linked person. One’s loss is another’s gain is irrelevant here, it’s one’s loss and another’s vain that fits right in.
“It is poor judgement to countersign another’s note, to become responsible for his debts”-Bible
- Opt for a Credit Building Card if you Need
A credit building credit card is designed to help you in these situations. It’s available to the bad or poor credit profiles and levies high-interest rates in case of non-repayment, another reason to pay off its bills on time. Therefore, obtain this card, start using it regularly and pay off the bills on time. Sooner or later, you will notice an improvement in your score. This will make you habitual to making these payments on time as well, and the process cures your credit score all along. Also, a short-term loan which is easy to repay in instalments can help the scenario.Such loans when repaid on time, add a valuable extent of creditworthiness toy our profile.
“The only man who sticks closer to you in adversities than a friend is a creditor”– unknown.
- Budget your Expenses and Make an Emergency Fund
Budgeting and saving for emergencies is another step in the direction. The need for funds and emergency can come up uninvited, you cannot foresee it. So to save for such times and not using up on thecreditsource which will add to your debts is a good idea. Never obtain funds that are unaffordable and uneasy to repay. These funds only delay the issues at hand. So brace yourself for all such times and budgeting your monthly expenses is the right string of financial harmony.
“Rather go to bed supperless, than rise in debt”- Benjamin Franklin
- Seek Free Advice From the Internet
It’s always good to get an outside opinion. When you think that the process seems difficult and you need more clarity on how to improve your credit score, a free advice to help you is a great utility. Many authorised financial advisories and the Financial Conduct Authority itself provides these services. You just have to hop on to the internet and start searching for these tips. Most of them are free to use and can help you in great extents.
“Success is not final, failure is not fatal, it is the courage to continue that counts”– Winston Churchill.
So improving your credit score is not a hill to climb, it’s just watching out for things in advance. It is more about planning your expenses and handling the repayments responsibly. The key to good credit health is giving it the time and attention it needs.
Shuvam Samal is an engineer turned marketing professional who is tightening her grips and pen to do wonders in digital and print platform. Hardworking and conscientious communication professional with experience in designing and executing changes and integrating digital marketing plans. Avid knowledge seeker with a keen interest in almost everything. Working as a financial writer with LoanTube (an online loan marketplace). https://www.linkedin.com/in/shuvamsamal/