There comes a time in life when you need to have some good credit to help push you through a financial crisis you may be going through or a new business you might be venturing into. In such an instance, all you will need to do is search for a good creditor to lend you the money you need. This can be a bank, SACCO or Shylock. However, most lenders require all applicants to meet some qualifications before they are granted a loan.
In most cases, creditors will want to know your credit history. Your credit history will explain how you have been able to repay previous loans, and help determine if you have a good credit score. You will need to have a good credit history for you to qualify for another loan. To have a good credit history, there are things that you will need to do before making the application. Discussed in this article are some of the ways you can improve your credit history.
Space Your Credit Applications
To improve your credit ratings, you need to understand how to space your credit applications. This simply means you need to know the right time to make the application for credit.
Avoid making credit applications during times that you will struggle to pay. Plan ahead and ensure that you have enough time to clear an active loan.
Close Unused Credit Cards and Contracts
Another way of increasing your chances of getting the credit you ask for, you need to mind the credit cards and contracts you are in. This is essential because most creditors will check the amount of credit you can access from other lenders and how much you have accumulated.
Therefore, in case you have credit accounts that you are open, and you are not using them any more, it is advisable you close them up.
Determine if you qualify before application
Before you make any application, it’s essential to check if you qualify to receive credit. Failure to receive the credits you have applied for before will contribute to your denial of another credit request. Therefore, it is your in your interested to inquire before making any requests.
Most creditors will offer a separate service, usually hosted online, to help applicants determine their credit worthiness. Use such services before making the actual application.
Avoid Making Late Payments or Missing Any
If you are looking for a way to improve your credit ratings, then you should never fail to make your payments on time. Similarly, you should never completely miss making payments. These two aspects will contribute greatly to your credit history.
This is because when you miss or make late payments, creditors conclude that you will do the same for future payments. In case you have problems with delayed payment, but you made it later, you can ask the provider to fix the problem. In most instances, you will have to pay some sort of fine or extension fee.
