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How To Improve A Credit Score

I recently looked at how you could maintain a good credit score. It is a question that we are asked a lot at Moolr. But there is another question that is asked even more frequently. How to improve a credit score?
This is not surprising. Having a bad personal credit score can place a lot of strain on a person. It can be stressful to know that you may not meet all the lending criteria when applying for loans due to prior defaults or arrears. The good news is that it is possible to improve your credit rating. Here are our top tips on how to improve a credit history.

How To Improve A Credit Score – Seek Professional Assistance

If you have a bad track record for defaulting on credit card repayments or other unpaid loans it’s always a good idea to talk to a professional. Clearly there is a trend here, and it needs to be reversed if you wish to attain a better rating.
There are plenty of consumer credit advisers available in the UK that can help you get back on track. The Citizens Advice Bureau may also be an option. For many people, all that’s needed is some better budgeting tips.

Also, knowing who to talk to when you can’t meet your repayment obligations is very important. Reputable lenders are always willing to help clients who are struggling to meet their financial commitments. Do not turn a blind eye to any problems. Contact the lender and deal with it head-on. you may well be able to negotiate smaller repayment sums during periods of hardship. In some cases,you may even negotiate to extend the loan duration. This is in order to reduce the cost of regular repayments.

Build a Positive Credit History

There are other, less painful ways to improve your credit rating however. It basically boils down to you becoming more trustworthy to prospective lenders. The path to this position is quite simple. The steps are straightforward. Don’t apply for too much credit at once. Do apply for a variety of credit types. Research thoroughly the type of card that is right for you. Also, do not max your cards out, as this does not look good.

How To Improve A Credit Score – Settle Your Debts

If you still have outstanding debts that you have defaulted on or are way behind in your repayments, it’s important to contact the relevant credit provider. Making arrangements to settle your debts will not only take the pressure off you, it will also go a long way to improving your credit rating.

Persistence and Patience

The final point to remember is to be patient. A bad credit rating cannot be eradicated overnight. Continue to meet your financial obligations and you will be rewarded with a better credit rating in time. Make regular repayments and do not miss a payment – this is the simplest way to improve your credit rating. Then, obtaining a loan will no longer be a major challenge. And the rates will be more to your liking too.

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