The overwhelming majority of American citizens find it difficult to do without financial assistance from banks. It is especially if they want to get new housing or a car. It is necessary to control your own credit dossier paying special attention to such an indicator as a credit score so that after applying for a loan, even a small one at, for example, https://directloantransfer.com/300-dollar-loan/, does not follow an unexpected refusal.
How Do I Know My Credit Score?
Accordingly, to improve your credit score, you need to know your entire credit history. It is in the borrower’s best interest to systematically track the status of the credit history in order to understand the actual value of the assessment score. Moreover, this is not difficult to do.
Follow the steps below:
- Find out in which credit bureau the credit history is stored by sending a free request to the Central Catalog of Credit Histories;
- Send an application to the appropriate BCI, what can be done:
- free twice a year;
- paid an unlimited number of times.
- Receive a printed or electronic credit report;
- Examine the rating score;
- Take measures to improve it.
Credit Score Checking Methods
A credit history that contains such an important parameter as credit score is formed in credit history bureaus specially created for this process. Any financial and credit organizations with which the borrower successfully or unsuccessfully interacts with information transferred to the BCH.
The subject of the credit history has the right to receive on-demand an up-to-date report on the state of credit history. Containing:
- Credit score and its characteristics;
- Current payment status;
- Information on active and closed loans;
- Delay facts;
- Information about requests for credit history;
- Court decisions.
The client’s task is to send an application to the bureau for a credit score. This can be done in several ways:
- Personally contact the department of the BCI;
- Write a letter;
- Send a telegram.
Factors Affecting Your Credit Score
A credit rating depends primarily on the following indicators:
- Discipline and responsibility of the borrower in terms of the fulfillment of the credit obligations assumed;
- The total lending period, that is, the period of use of bank loans by the borrower: the longer the period, the higher the degree of confidence in the client;
- Frequency of seeking financial assistance. If borrowers send out applications en masse, they create the image of a person who constantly needs money since one does not know how to live within personal means;
- The size of the current debt in relation to the level of income. Debt will not allow you to get a new loan;
- Types of loans: financial groups are more likely to trust clients who issue different banking products.
Ways To Raise Your Credit Score
Credit Card Processing
This is relevant if the current reputation of the potential borrower is critical. The fact is that with a badly damaged credit score, a credit card will simply not be issued. Therefore, either small current delays of no more than a month are allowed, or problematic closed debts, the delays on which lasted no more than 90 days.
Registration of Commodity Credit
When considering how to raise your credit score when you have a bad credit history, you can use product loans that are issued for purchase in a store. The ideal option is to buy inexpensive equipment or a simple smartphone on credit.
With a large loan amount, a refusal will most likely come. Thus, do not choose something expensive. The technique is most suitable for this purpose since the interest rates on loans of its acquisition are the highest. It means that the requirements for borrowers are minimized.
If you want to quickly raise your credit score, then the most urgent way is to contact a microfinance organization. Moreover, you can find a free option to get quick money. There will be no costs in terms of interest and overpayment.
To raise your credit score, you need to choose short-term products or payday loans. Small amounts are issued for a period not exceeding 1 month. The rates are the highest (no more than 1% per day) but the likelihood of approval is extremely high.
MFI is the only solution if you have a bad credit score. Banks will refuse even the simplest and most expensive products. Loans are issued to almost everyone without refusal.
When choosing an offer pay attention to programs with free issuance to new borrowers. Many microfinance organizations issue loans to new clients at 0% (subject to repayment on time). As a result, the rating can be improved and there will be no overpayment.
Select a Suitable Bank
Some banks and MFIs create special programs to help borrowers who are given credit and those who want to raise their credit score.
The improvement process consists of three steps:
- a small cash loan;
- obtaining a credit card;
- express loan on the required amount.
Each step is reflected in the credit score improving it and increasing the borrower’s rating. If the violations are not serious, it is better to choose the option with a credit card or commodity credit. If you need to raise the rating quickly and with an extremely negative COI, it is better to choose an MFI. The bank’s program is not ideal in that all steps can take several years.