To obtain any PayDay Or Cash Advance Loan in the event of urgent cash needs, your credit score plays a very key factor in determining whether or not you will get a better interest rate. In worse case, a bad credit may even affect your chances of getting a loan in the first place. However, it is not the end of the world if you have a bad credit history now, there are still ways to improve your credit score. Below are some useful tips which might help you.
Tips To Achieve A Better Credit Score For Yourself :
Tip 1 : Pay Down Your Credit Card Bills To Improve On Your Credit Utilization Ratio
A step worth while for you to take, is to pay down your credit card bills so that the balance due is less than 30%. This will in turn improve on your credit utilization ratio (see below) which is an important factor when it comes to determining your credit score.
(What is Credit Utilization Ratio?) The percentage of credit limit that you have used, over the amount of credit which you have access to.
To increase your credit score, all you need is to prove that you can manage your debts well by paying your bills on time and not that you are pushed to your limit of credit line every time.
Tip 2 : Get An Unsecured Loan To Help Your Credit Score
Another way to improve your credit score is to get an unsecured loan with suitable terms (or at least you feel comfortable with) and make timely and punctual installment payment for this loan. This practice will help in turning your bad credit into good one. The downsides are, the interest rates for unsecured loan are pretty high and the process may take longer.
For a bad credit holder to get a cash loan is often full of hurdles. He will always face obstacles of being turned down by lenders and high interest rates. So if you are a bad credit holder now, why not try my tips to get out of your bad credit status?