A good credit record can potentially save you thousands of dollars in interest payments. By making a few simple adjustments to one’s financial habits, an individual can take control of their financial future. A credit repair service may offer a temporary solution by erasing certain defaults from your credit record (at an exorbitant fee), but it will not address the underlying issues that got you to the state of bad credit. Your financial future is worth investing in and part of achieving a sustainable solution is changing your long term financial behaviours.
PART 2 – Building on Sustainable Financial Behaviours
1. Don’t max out your accounts
Don’t use all the credit available to you. Only borrow what you can afford to pay back. This is why small personal loans are more preferable to larger, long term loans. If you do require an increase in your current credit lines, make sure it’s for a legitimate purpose and that you’re not just borrowing for the sake of having a bit of extra cash.
2. Build a solid payment history
Making repayments on time, even if it’s the minimum amount, will create a strong foundation for rebuilding your credit history. This means ensuring your payments arrive in full before the due date. Even one day past this due date will count as a late repayment. If you have trouble keeping track of your repayments, it might be a good idea to create your own personal repayment plan. This will ensure you are up to date will all payments and don’t get caught out with an unexpected expenses.
3. Demonstrate long term financial behaviours
Once you’ve established a positive record with a particular financial lender, it will become easier to access credit in the future. This means that you can continue to update your lines of credit as you make final repayments and establish new accounts. Demonstrating current and ongoing financial dependability is the strongest indication of an applicant’s suitability for a loan and is the most important part of your credit record.
The goal is not only to establish a long term relationship with a reputable financial lender, but also to ensure that relationship contributes positively to your credit record. By dealing exclusively with lending providers that operate under responsible lending practices you are ensuring that you maintain long standing patterns of on-time repayments and establish a positive credit score for the future.
If you are interested in improving your credit record, consider taking out a small personal loan with Cash at Call. Cash at Call is a reputable financial services provider that emphasises responsible lending practices. You might not be able to erase your credit past, but by demonstrating good credit habits with a short term personal loan from Cash at Call, you can take a positive step towards a brighter financial future.