Are you thinking of applying for a payday loan in Australia Then credit score is an essential factor in your financial life? The higher your credit score, the more likely you are to qualify for loans and credit cards at the most favourable terms which will SAVE you money.
If your credit card score is lower than you would like it to be, you are not alone. Getting rejected for loans and credit can be daunting in Australia. The good news is that you can recover from a ‘lower than you would like’ credit score. We have got some simple steps to help you improve your credit score and get your finances back on track!
1. Pay your bills on time
Did you know that your payment history makes up 35% of your overall FICO score? This means, every time you miss a payment, your score takes a hit. To avoid this, you could set up automatic payment methods. This will guarantee you never fall short on the due date!
2. Get a credit card
If you don’t own one already, it’s time you consider getting a credit card. However, it is important to refrain from splurging. You could start with a low spending limit and then make small changes that can be paid off in full each month. This will increase your credit score. Your lender will be able to notice you are a reliable and responsible borrower.
3. Pay off debt
Did you know that the amount you owe on accounts makes up to 30% of your FICO credit score? To improve your credit score, pay off your debt in instalments!
4. Regularly monitor and review your credit report
It is very important to check your credit report regularly. Did you know that you could obtain a free credit report each year? Alternatively, you could also sign up for the monthly subscription to get your Equifax Score and monitor changes on your credit report by setting up credit alerts. If you spot any unusual activity, make sure you contact Equifax.
5. Apply for credit ONLY when you need it
Unnecessary credit can harm your credit score! It could create many hard inquiries on your credit report. Moreover, it may tempt you to overspend and accumulate debt.
6. Be patient
We get it. Having a perfect credit score is a dream. But let’s face it, your credit score won’t arise overnight. This is one reason why you should focus on developing good long-term credit practices. Establish good habits, as mentioned in the above steps, and you will start seeing the difference in your credit score in time.
Improving your credit score is an excellent goal to have if you are planning to apply for fast loan cash or instant payday loans or any loans in general. Though it may take several weeks, and sometimes several months to see a noticeable change in your credit score, the sooner you begin, the sooner you will see the results! Improving your credit score can help you negotiate a better deal with your lender that will reward your good credit history.