A good credit score can make the difference in being approved for a loan. Even if you have had circumstances that have caused your credit score to decrease, there are steps that you can follow to raise it to 700.
Secured Loan
If you need a loan, you could applying for a secured loan at your bank and by making payments on time, you will raise your credit score. Open a savings account and deposit a secured amount into the account, maybe $500 to $600. After you have opened the savings account, apply for the secured loan. Link the loan to the savings account. If you fail to make the payments, the bank will use the savings account to pay the loan. Regardless of your credit history, many banks approve these types of loan because they have the savings account as collateral.
Borrow Credit
You can improve your credit score by being an authorized user on the credit card account of someone else who has good credit. If you can convince a friend or family member to add you to their credit card account as a joint account holder, your credit report will show their credit card account. If they pay their account on time, it will improve your credit score.
Timely Bill Paying
Paying your bills on time will help you reach your credit score goal of 700. Paying a bill late even one time can affect your credit score and cause the rating to decrease. If you have problems remembering to pay your bills on time, try using an automatic bill-paying program. Many banks offer these services for free and it eliminates the hassle of you trying to remember to pay.
0 comments:
Post a Comment