Have you been declined for credit? Learn some simple and effective strategies to improve your credit score and qualify for an unsecured loan or mortgage.
If you have a bad credit history, you’ll be declined for most financial products like installment loans. What may surprise you is that not previously borrowing money will be construed almost as negatively as past defaults. This is because the lender has no way of assessing your application. When you’re repairing or building your credit history, it’s imperative that you repay your debts punctually. It’s also vital that you check your credit report for erroneous data and get any mistakes corrected.
How to Get Your Loan Application Approved
Pay your debts punctually – Your personal credit report indicates the risk a lender faces when lending you money. In order to provide incentives, the information that’s held about you evolves over time. The more months that have elapsed since you defaulted, the more likely you are to be accepted. It’s unrealistic to expect your credit to improve overnight, but the way you handle your debts now and in the future will enhance the likelihood of your application being approved.
Credit report mistakes – Although the information held about you by credit reference agencies is usually accurate, it’s important to appreciate that there are still mistakes. If negative information has been recorded incorrectly, it will lead to your application being declined. The Fair Credit Reporting Act gives you the right to correct inaccurate information. The appropriate supporting information must be provided in order for the necessary changes to be made.
Payback money you owe – Not only do savings earn very little interest at the moment, but the cost of borrowing has also risen considerably in recent months. Always pay off the high interest and secured debt first. Paying down debt not only saves you money, but it’ll also increase the likelihood of approval.
Use old credit and store cards – Leaving old accounts active reduces the amount of cash that can be borrowed, but closing them down has negative implications for your credit score. Instead, use an old store and charge cards occasionally and settle the balance in full. It’ll increase the likelihood of getting a personal loan by the lender.
Don’t make too many applications and only go for Licensed Money Lender Singapore – We all want to get our application approved, but this will normally involve passing a credit check. Each search will show on your credit report for 12 months. Although lenders expect to see searches, too many of them within a short space of time will be detrimental to your chances of success. It’s seen as a sign of money troubles or even fraud. Rather than making lots of applications, use a comparison site to pinpoint financial products.
Rapid Credit Repair Doesn’t Exist
Don’t believe companies that claim to be able to deliver rapid credit repair or get you a new credit report. It takes time to undo the damage, and getting a new report is illegal. These companies are out to make money and don’t really care how they achieve this objective. There’s nothing that a credit repair company can do that you can’t achieve on your own. If you remove inaccurate data and pay your debts punctually, you’ll get approval for a loan a lot sooner than you expected.