With all the stress and anxiety surrounding money and finances, and the million different advertisements and articles highlighting where we SHOULD be in our lives, it is no wonder countless people are asking how to fix their credit rating. The word “fix” suggests that something is broken – and we want to dispel this notion from the start. If, however, you want to improve your financial clout and improve your overall impression when filling g out that rental agreement or applying for that new credit card – then just follow these simple steps.
Pay attention and pay on time
So many people miss payments on their various subscriptions, not knowing that this can absolutely affect their credit rating. Being able to pay for things on time is indicative of good financial planning and responsibility,which is a big step towards a positive credit rating. To that end it is always important that you know when your payments are due and exactly how much you owe.
By paying on time you develop a good and responsible financial reputation.In order to help you pay your bills on time you can arrange specific reminder switch your specific bank or even implement a reminder strategy either at home or on your phone. The easiest of course is a stop or debit order on your bank account.
Pay it off - don’t move it around
Paying off debt is difficult; there is no question about it, and can be a huge cause of stress and anxiety, but you need to make sure that your aim is to pay debt off rather than just move it around.Opening more accounts is likely to make your score a lot worse off than if you just had debt on a single account or credit card. Talk to your lender, devise a payment plan and work towards paying it off. You can’t run from your debt forever, like a lie it always finds a way to catch up with you. Rather be proactive and meet it head on. This will not only help improve your credit rating but it will stand you in much better stead in terms of your overall finances.
Be aware of how to re-establish
If you have previously been in a period of bad credit but have since managed to resolve your issues then you can look to re-establish your credit rating. One of the ways you can do these is by opening new credit accounts, using them and then ensuring your clear your debt and pay back responsibly and on time. Operating like this will help to rebuild your credit score.
Stay on top of your credit rating
This is not a tip that will help you resolve your credit issues, simply one that will help you to keep on top of them. Make sure that you are aware of your credit rating in order to avoid any embarrassing situations. It is also important that you know what your credit rating is so that you can best plan for the future and work out how to deal with any credit issues you might have.
It is likely that rushing got you into a situation where pay backs started piling up and so, it is important you take your time evaluating each and every situation and weigh up your options before acting on impulse. Fixing credit issues is never easy and because of that it often takes time to fix them. It does not make sense to rush into short term solutions when taking a step back, evaluating the situation and taking your time is your best option.
At, https://www.versewealth.com.au/ our team of Financial Advisers will provide you with the best advice to help you save more, invest better,improve net worth and most importantly, achieve the things that matter to you.