Having a poor credit rating affects you when you are trying to get approved for a loan or get a credit card. If you have bad credit or a poor credit rating you can take some simple steps by doing things to easily improve your rating without having to get a loan first to improve your credit rating. Here is how you can start to improve credit rating almost immediately.
1) Write down on a piece of paper all of your payments and debt and see if there is any accounts or loans that you can consolidate. Getting rid of unnecessary interest charges or monthly bank fees can save you hundreds of dollars per year. If you dont think you can amalgamate any loans or accounts have your partner or a friend look at your list to see if there is anything they think you can do. Sometimes having someone else look with a different view can be what you need to spot the obvious to them and maybe not so obvious to you.
2) If you have credit cards whether they are visa credit cards or retail store credit cards if you have nothing owing on them cancel them and cut them up. Dont gamble that you wont use the credit on them because chances are if you are reading this article on improving your credit rating you will probably lose that gamble and spend more money you do not have. Did you know that when you have credit cards with nothing owing that when you are being considered for a loan that they take into consideration any amounts you could use on credit cards? So if you have credit cards you never use but want to improve your loan borrowing power then cancel them.
3) No matter what and how hard it may be or what else you are sacrificing, you have to make your monthly payments. If financially you just cant make your payments either in part or full then call the company you owe the money to and ask for a lower payment. Tell them your situation and chances are they will work with you to get their money back. Most companies dont know you are having financial difficulties just because you havent made a few payments. For all they know you could be just trying to stiff them for what you owe.
4) Its all about paying down your debt consistently and not missing payments also finding ways to save on interest charges or any other charges that are unnecessary. It takes time, maybe 3 to 5 months but with minimal effort you can improve your credit rating in this short period of time which will help you qualify for a home mortgage or personal loan for a vehicle or whatever you need.
Or maybe you just want to improve your credit rating because you have had a rough go recently or in the past and dont really need a loan right now but want peace of mind knowing your credit rating is good and if you ever need a loan you will qualify.