6 Ways to Improve Your Credit Score

Posted by Christopher Rippy on January 12th, 2021

Credit history, one might say, is the borrower's passport. It reflects all his/her actions committed in credit institutions. Let's say you took out a loan from a microfinance institution and a bank. All data is immediately reflected in the credit history. It can deteriorate for various reasons. But do not despair, there is always a way out! Explore all 7 methods to improve your credit score and choose the one that suits you best!

Way 1 — Get a credit card

To improve your credit score, use a credit card to pay for things and services in stores. Use your credit limit and do not forget to top up your card balance on time. This way you will improve your credit history for free. The bank will record your actions with a credit card and see that you are a responsible client.

Way 2 – Take a payday loan for a short time

We recommend taking fast payday loans in Connecticut via 1stalliancelending.com as almost all applications are approved. You can get a payday loan if you have reached the age of 18 and have an active bank account. All you need to do is to fill out a short application online, get connected to the right lender, and wait for approval. Funds are usually deposited on the borrower’s bank account within 1-2 days (often on the same day). 1st Alliance Lending is available 24/7so you can access the website and apply for an online loan at any time of the day or night.

On average, the whole procedure takes no more than 20-30 minutes. Those who have already used the service and repaid loans on time will be able to get more favorable conditions for their next payday loans!

However, you should remember that although it is easy to get money on the Internet, you must always fulfill your obligations. This will help you achieve financial discipline, improve your credit history, and get rid of future financial problems forever.

Way 3 - Loan refinancing

If you have several loans, then refinancing will allow you to reduce your monthly payments. However, approval for refinancing is received by borrowers who have not been delinquent on their current loans for the last 6-9 months.

Way 4 - Find out your credit score for free

Often a single mistake reduces your credit score, especially when you have previously been overdue for more than 30 days and then repaid the loan. You need to check your credit history for errors.

You can request a free copy of your credit report from the three major credit reporting agencies – Equifax, TransUnion, and Experian – once each year at AnnualCreditReport.com or call toll-free 1-877-322-8228.

Way 5 - Improve your credit history in the credit bureau

It often happens that you have a bad credit history due to a mistake by a bank employee who did not transmit information about loan repayment. Another common case is that you did not take out a loan and, for example, became a victim of scammers. In such cases, in order to fix your credit history, it is necessary to send an application by registered mail to the credit bureau and attach a certificate of loan repayment, or a police report on the initiation of a fraud case.

Such an application obliges credit bureau employees to:

• recheck your credit history;
• make a request to the bank;
• give you an answer about making changes to your credit history within 30 days.

Way 6 - Reduce your debt burden

Banks and microfinance institutions refuse to provide a loan to clients if they have a high maximum debt burden. We are talking about the ratio of the official income to the monthly payments on current loans. For example, if a person receives ,000 a month, and spends 0 or more dollars to repay loans, he or she is denied access to banking and microfinance products. Such a client is considered unreliable and insolvent.

Therefore, before applying for a loan, consider the debt-to-income ratio (DTI). The lower it is, the better. If it is less than 30 percent, you can easily get a loan for various purposes, including improving your credit history.