Many people need credit cards and loans when cash flows are not enough. However, those who cannot pay their loan debts regularly have very low credit scores. Thus, banks do not want to give credit or credit cards to these people. So what should those who have a low credit score do?
If your credit score is low, you should first try to pay your ongoing debts regularly and on a day. At least try to pay the minimum wages of the debts regularly to avoid legal proceedings.
You can upgrade your credit score with the following steps:
1.Get your credit report first. With this report, you can see how you rank between 1-1900. 1 is the worst and 1900 is the best in the credit rating that banks look to give a new financial product.
2. Download an application that you can follow your credit and credit card debt / limit information in all banks, daily changes in your total limits and debts, and your monthly payment performance.
3.Pay your debts. Try closing both your bank and billing debts, if any. Invoice payments are also taken into account in the credit note. Finishing your debts will create a safe profile about you before the banks.
4.Make your payments regular. 35 percent of the credit rating consists of credit product payment habits. For this reason, you need to make your credit and credit card payments regularly.
5.You need a bank account. Otherwise, you should open an account at the bank immediately. You should keep your income in your bank account and you can make your payments and expenses from this account. You can also pay your bills through your bank account. However, ask your account to define an additional account. You should also use your additional account and make your payments on time.
6.You should use a credit card for your spending. Passing your spending through the banking system is a factor that affects your credit rating.
7.You should not apply for a loan continuously over the Internet. If you have credit products that you have difficulty in paying, you need to wait for new applications until you get them on track.
8.You can pay this debt regularly by taking a low limit loan. (Limit doesn’t matter) You should even close your debt early if possible.