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Tips For Improving Your Credit Score

August 31, 2012

People struggle a lot when it comes to financial management and budgeting. Over 60 percent of the general public do not plan any thing at all. They just earn, spend, borrow and repay. And this is what they keep on doing their entire life. Borrowing is not an issue for us anymore. Not for any of us. Maybe it is due to the fact that it is a permanent part of our lives as well as our society. And we have accepted it with open heart.

 

Borrowing is not your enemy. But it can be provided you do not use it smartly. For instance, if you take a simple online no fax payday loan, it does not affect your credit history and/or credit score. Even if you pay it after due date.  This is one potential benefit of payday loans among many other payday loan benefits. Online no fax payday loans are the form of short-term loans and come under borrowing. So borrowing is not bad. The way how you use borrowing is bad. And you need to fix it.

 

If you already have ruined your credit score and looking for some great tips, please read these tips, suggestions and advices. And I am sure you will learn from these.

 

  • Stick to whatever that has been said earlier. That is, borrowing is not bad rather the way how you use borrowing is bad. In fact, they way how we use borrowing has ruined not only our credit scores but our lives as well.
  • The main thing that causes your credit score to decline is late payments. Having said that, short-term late payments do not affect it rather its those long-term bills and loans that actually affect your credit scoring. As mentioned earlier, if repay your payday loan after due date it will not going to affect your credit score at all. But if you will pay your mortgage installment after due date, it will surely affect it. And you need to avoid it. Make sure that you do not delay your payments unnecessarily. Of course, there is no room for unintentional late payments as well. You must pay all your bills before due date.
  • Do not wait for the last date. Avoid paying bills right on the due date. Rather pay them as early as you can.
  • If you do not have the money to pay your bills. Take loan from your relatives or from any other interest-free source. The payment of bills in-time is more important than anything else. You need to pay the bills in-time. And to do so, you must not hesitate to take money from your friends or colleagues.
  • Again, if you do not have the money to pay your bills. Go for a short-term loan. I suggest you get a payday loan. Since these are due on your next paycheck and will be withdrawn directly from your bank, so you do not have to worry for the repayment. Also, even if you do not manage to pay your payday loan before due date, it will not hurt your credit score. Meantime, you can manage to pay your long-term bill before due date.
  • Plan and manage your finances. Do not try to assume any thing rather plan and move smartly. Then and only then, you can push your credit score up the ladder.
  • While you will be clearing all your bills in-time, avoid taking or applying for any other loan especially long-term loan. Since you are already in the process of improving your credit score and getting rid of debts, it is useless or I must say unwise to advance another loan.
  • You will not see the results very soon rather you have to wait for some thing good. I suggest, you must wait for at least one year. Stick to this plan for one year and then see how it affects your credit score. Improvement would be slow, but it would be there.

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