It could have been when you were trying to upgrade your phone. Perhaps it was hen you’re looking to lease a new computer. It could have even been when you were needing to buy a new kitchen appliance in an emergency. Being denied credit can be an embarrassing situation to be in, with you left standing in front of the register with no means to make payment.
However, just because it feels like it will be like this forever, there are easy steps which you can take to help improve the chance of being accepted on your next application. Below are some of those ways to get you started.
Consolidate Your Debts
The one thing that a credit doesn’t want to see is a large number of small debts spread across multiple stores and regular credit cards. The reason? They aren’t able to see the available amounts on each of these cards and have no way to know if you can or will make each of these payments on their correct due dates, etc.
By consolidating all of your debt into one loan, you are able to make and show one easy monthly payment. This helps creditors to obtain a clearer understanding of your financial position and ability to make your repayments.
Don’t Blow Your Budget
Maintaining consistently increasing savings is a great way to show a creditor that you can mange your finances and financial obligations. However, if your savings fluctuate then it can suggest that you aren’t able to keep your budget together. One of the most common reasons to spend outside of a budget is that the budget didn’t allow for sufficient items, such as entertainment or emergencies. Be sure to include this type of allowance into your budget.
Of course, the more that you can continually save, the better. When you are looking at your monthly expenses, be sure to look for ways to save. For example, the Groupon Coupons page for Barney’s New York is a great way to save on a wide range of items which can all help to keep your monthly expenses down.
Don’t Get Caught on the Amount
Your credit score and report consist of more than just the amount of debt that you have. It also takes into account information such as, how often you are late with your payments, how many fees you have incurred, and how often payments fail. Combined, this can make for a pretty unappealing score.
The best way to fix this is to switch to direct debits, where your utility provider automatically withdraws the full amount at the due date. However, if you do take this option, ebs re that you have sufficient funds to clear the payment each time, otherwise you could cause further damage to your credit score.
When it comes to your credit worthiness, there is no quick and easy way to improve your situation. However, the tips in this article are great ways which will allow you to gradually improve your credit score and the likelihood of being approved for credit during your next application.