Struggling to Acquire a Quick Loan? Try these Steps to Improve Your Credit Score

credit scoreWhen you’re struggling with financial problems, you may want to opt for a quick loan to get your finances back on track. However, if you haven’t maintained a good credit score due to delayed payments or no-payment of loans, it may not be easy for you to qualify for a quick loan.

A quick loan is your go-to option when you need quick funds. While the interest rate may be relatively high, they help you arrange funds for your emergency needs. The screening process isn’t as rigorous as other types of loans. But you need to have a good credit score to qualify for the loan.
Here are a few ways through which you can improve your credit score to easily get funds you need:

Remove Late Payments

The failure to make timely loan repayments can ruin your credit score. If you delay a payment by 30 days during the last year or have a 90 day late payment during the past 2 years, then it’ll lower your credit score by 60 to 110 points, which is huge.

Get in touch with the lender to negotiate the removal of this late payment. If you’ve always been punctual with payments in the past, then it’s likely that they will adjust it due to your goodwill. Otherwise, you can get it removed in exchange for signing up for automatic payments. If nothing works, file a dispute for the inaccuracy of payment entries.

Never Delay Credit Card Payments

When it comes to your credit score, you can’t overlook the impact of credit card bills. Delayed credit card payments affect your credit score like nothing else since they involve a higher interest rate.
So, you should focus on credit card bills to improve your credit score. Prioritize your credit card bills and paying off the amount before other debts can save you from a financial crisis down the road.

Limit Credit Utilization Ratio

Your credit utilization rate is obtained by dividing your total debt with total available credit. It’s recommended to keep this ratio below 30%, or your credit score will suffer. This percentage is a crucial factor when a lender evaluates your application. So, keep an eye on the balance to qualify for a quick loan.

You may think of closing credit card accounts so as to increase your credit score, but this action backfires and further damages your credit history. Therefore, maintain a 15% utilization rate on every credit card to avoid rejection of loan applications.

Monitor Your Credit Report

Keep an eye on your credit report to improve your credit score. Loan lenders and credit companies can sometimes make mistakes that negatively affect your chances of getting approved for a quick loan.

However, if you keep an eye on the report and address mistakes without unnecessary delays, you can maintain a good credit score.
The aforementioned tips can help you improve your credit score so you can qualify for a quick loan without any problem.

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