When it comes to embarrassing moments, there is nothing quite like being denied credit. After all, it doesn’t’ matter how discreet the situation really is, it feels like the world is watching and judging you over one small missed payment or a forgotten electricity bill.
If this sounds like you and you have been hesitant to apply for credit again, below are some tips to help you improve your credit score and put in a better place for your next application.
The first thing that you should do is stop spending! Instead, recognize that you need to improve your situation and improve it! This means creating a budget to track your monthly incomes and expenses and starting to generate consistent savings.
The key here is consistent. When creating your budget, be sure that it isn’t too strict and is attainable, so that you can show a consistent level of savings.
If You Must Spend, Spend Wisely!
Of course, there are going to be items which you need to buy. When the time comes, instead of paying retail, look for sales and vouchers. The Groupon Coupons page for Kaspersky Labs is a perfect example of how you can save money on something you would buy anyway. Of course, the tip isn’t limited to this, you can find almost any product you need using platforms like these.
Consolidate Your Debt
If you are struggling to reduce your best because you are paying small amounts to numerous providers then it is worth considering a debt consolidation loan. A consolidation loan transfers all of your existing lines of credit into one large sum, leaving you with one single fortnightly or monthly payment schedule to manage. This is not only a great way to reduce the amount of interest you pay, but also to make your debt relief feel more achievable.
Swap to Direct Debit
It only takes you being late on one electricity bill for your credit score to be affected. If it happens twice or three times then you can see a serious decline. The best way to prevent this is by utilizing direct debits.
Consider opening a new bank account which is only used for your direct debits. Then, using your budget, direct all of the payments for your expenses into this one account and allow the direct-debit system to take care of your payments. This is the easiest way to ensure that you don’t miss another payment date and have your credit score affected.
When it comes to repairing your credit score, the most important thing to remember is that it isn’t something which happens overnight. Many people start plans and take advantage of ideas like the ones mentioned above but fail to see big movement early on and so they give up. Instead, recognize that it will take some time to get your finances in order and that, when you do, you will be in a great position to finally get that car!