There are certain risk factors that can help you better understand the necessary actions you can take to improve your credit score quickly.
Some of these include:
Your payment history
Credit utilization rate (ratio)
These two key factors combined represent an average of 70% of your credit score, and understanding how they work will play a critical role in improving your credit score faster.
Here are 5 simple steps you can take to help boost your credit score, using the two stated factors:
#1: Early Payment of Bills
A delay in the payment of bills will make you less creditworthy to lenders, which in turn reduces your credit score.
Lenders are always very interested in how reliable you are in the payment of your bills, and this is one of their central interests whenever they request your credit score.
This is because lenders tend to rate past payment performance as a good predictor for a borrower’s future performance.
This goes way pass your regular credit card debt or any loans incurred (such as student or car loans), it also reflects in how quickly you make payments on phone bills, utilities, rent, and others.
So, one very good way to improve your credit score quickly is to start paying bills on time, as this positively influences your credit rating with lenders.
One good way of ensuring that you never miss out on a bill payment is by using available tools to automate the payments for you and ensure that you are always on time every month.
#2: Taking up Payday Loans Alternative
Online payday loans are an excellent choice for funding, especially if you’re looking not to tamper with your credit rating.
This is so because statements on this kind of loan are generally not reported back to the three major credit reporting bureaus (Equifax, Experian, and TransUnion).
So, instead of going for one of the regular loan programs that could potentially hurt your credit score rating, you could rather go for a payday loan.
And the best part?
Guaranteed payday loan companies like InstantPaydayNV do not conduct a credit check as a requirement to get your loan request approved.
But you must understand – payday loans Nevada do not have any effect on your credit score rating… That is, they neither increase nor decrease your credit score; they are just there to keep you going while you are on your journey to fixing your credit rating.
#3: Report any Errors in your Credit Report
It’s always important to constantly check your credit score rating on all of the three credit reporting bureaus (Equifax, Experian, and TransUnion) for any errors.
False information on your credit report could reduce your credit score by a lot. So it’s always important to confirm the accuracy of the accounts listed on your reports.
And if you come across any inaccuracies in your report, ensure that you dispute it as quickly as possible, to have it corrected.
Checking on your credit regularly is one good way of improving it because it can help you detect any inaccuracy before they can do further damage to it.
#4: Ensure Low Balances on Credit Cards
As stated earlier, the credit utilization ratio is an important factor that plays a critical role in the calculation of your credit score.
This is done by adding up all balances on your credit card at a given period of time and then dividing that amount by the total limit of your credit.
For example, if you typically charge about $1,500 monthly and the limit of your credit across all your credit cards is $7,500, your utilization ratio is 20%.
In order to calculate your average credit utilization ratio, you have to first go through all your credit card statements from the last 12 months (one-year).
Then sum-up the statement balances for every month across your various credit cards and divide it by 12. This will give you a pretty good overview of how much credit used monthly.
The importance of knowing your credit utilization ratio is that lenders always love to see credit utilization ratios of at least 30%.
And generally, borrowers with really good credit scores often have very low credit utilization ratios.
The credit utilization ratio is one factor that helps lenders better understand whether or not you have maxed out your credit cards, and as well how to deal with the credit well.
The best ways to positively influence your credit utilization ratio include:
Payment of debt
Regulate your credit card balances, keeping them as reasonably low as possible.
Being an authorized user on a different credit account.
Becoming an authorized user can be a great way of improving your credit report, especially if you are added to an account that is always quick in making payments.
#5: Keep your Unused Credit Cards Open
This is a really smart strategic way of decreasing your credit utilization ratio.
As long as you won’t be spending on annual fees, keep your unused credit cards open.
Yes, it’s possible to get your credit score higher in rating in a matter of weeks, but all these can only be established if you:
Always check your credit report for errors to get it rectified
Pay bills when due
Pay off credit card debt and other collective accounts.
Now I’d Love to Hear from You:
How long did it take you to improve on your credit score rating?
Or maybe you are finding it really difficult dealing with issues with your credit report?
Either way, let me know by leaving a comment below!
We are here to assist you in finding a reliable moneylender to solve your financial troubles without much hassle. Using our experience in the field, we will provide you the required guidance to apply and get a personal payday loan in less than 24 hours.
Short term loans are emergency credit loans that have been designed for short term financial issues. The loan amount is small and limited to a fixed upper limit. The loans are exclusively created for the short term and will become expensive burdens when extended and used for long-term purposes.
The operators of Instant Payday NV are not lenders. We are neither a bank nor a financial institution. We are not involved in the process of making credit-based decisions related to lending, offering loans, or collecting repayment.
The website has been created to act as a bridge, a connecting agent between the applicants and the moneylenders. We do not charge any fee to process the loan application or help our customers find a reliable match for a loan from a third-party lender. We do not oblige any user/ customer to contact the lender or to accept a loan application.
The data present on the website related to short-term loans and the industry practices are for information purposes only. Instant Payday NV does not collect, store, or access the details related to fees and charges levied by the lenders. We do not endorse any of the lenders in the network.
Short-term loans are not available in all states. Not every lender in the network can offer a loan of up to $1000. We cannot guarantee that the loan application will be approved by a lender. Instant Payday NV also cannot guarantee that every application will be successfully matched with a lender or that the lender will provide the applicant the loan amount.
The lenders might perform a credit check through one or more credit bureaus (which include but are not limited to the major credit bureaus) to determine the reliability of the applicant. The lender will also need to perform other verifications such as confirming the social security number, national ID, driving license number, or any other identification documents submitted by the applicant.
The terms of the loan proposal depend on the lender and various factors such as the federal laws and state laws, or industry regulations. The terms and conditions of the loan proposal will vary from lender to lender and from one application to another.
APR (Annual Percentage Rate) is the interest rate calculated per annum for the loan. Instant Payday NV is not a lender. We do not have the required information pertaining to the rules, regulations, and terms used to calculate APR by individual lenders. APR calculations vary from one lender to another, one state to another. They also depend on various factors that decide the APR of a loan. The credit rating of the applicant can be one of the reasons.
Any other additional charges including but not limited to the origination fee, late payment fee, non-payment penalties, or non-financial that include debit collecting actions, late payment reporting, etc. come under the responsibility of the lender.
Instant Payday NV has nothing to do with the payments charged by the lenders or the action taken by them. We do not maintain any information regarding the same. The charges and actions are to be fully
disclosed by the lender as a part of the loan agreement. The calculation of APR is the annual rate and not the financial charge of the product.
Implications of Late Payment
We highly recommend our customers to contact the lenders to enquire about the possibilities of late payment. In the case where late payment is considered possible, the late payment fee is applicable and implied. The laws of the state and the federal govern the cases of late payment fees and vary vastly. All details related to the procedures and costs associated with late payment are disclosed in the loan agreement. Customers should carefully review the terms before signing the contract.
Implications of Non Payment
In case of nonpayment of the loan, both financial and nonfinancial penalties may be implied. The charges for nonpayment and late payment are disclosed in the loan agreement. Additional actions related to nonpayment’s such as renewals or extensions can be implied upon given consent. The terms of renewal are disclosed in the individual loan application. Additional renewal charges may also apply.
Lenders may perform debt collection practices. The practices are adjusted as per the Fair Debt Collection Practices Act and any other federal or state laws related to the industry to ensure that the customer or the loan applicant does not end up being a victim of unfair trade practices. Most of the lenders do not use outside debt-collecting agencies to recover the loans. They use in-house methods to collect the debt from the applicants.
Late payment and nonpayment of the loan might have a negative effect on the credit rating and further decrease the rating. This may cause them trouble over time. Lenders may report to credit bureaus such as Experian, Equifax, Transunion, etc. In such instances, the late payments and nonpayment’s may be recorded and remain in the records for a certain period.