There comes a time in all of our lives when we need to get a loan for a necessary purchase. You might want to buy a house, carry out home improvements orfor instance. For your bank or lending company to approve your loan, they need to check your credit score. This tells them whether or not you are a suitable and reliable person to lend money to. If your credit score is not good enough, it can prevent you from getting the funds you need. Thankfully there are some frugal tricks you can try to get your score where it needs to be. Take a look at these ideas to find out more.
Check your credit report for free
It will be hard toif you don’t know what it is. Many companies will ask you for a small fee to see your credit report. If you pay this each time you check, these small fees can quickly build up. Look online for companies who offer free complimentary checks on your credit report to see where you currently stand. Then cancel before you incur any monthly charges.
Checking your report can also be beneficial in other ways too. You can use it to see which areas of your finances need improving and to ensure all the information is correct.
Use your credit card
This might sound like a strange trick. But it’s one of the best ways of improving your score. Instead of using your credit card for large purchases, start using it for smaller purchases each month. It could be a pair of shoes for your child or groceries for instance. Keep the amount relatively small and pay it off quickly. This active use of your credit card can help to significantly improve your score. It will show the bank or lender that you can pay off debts promptly. Do this for a few months, and it shouldn’t take long for your credit report to improve.
Download an app
There are a number of credit report apps which you can download for free from your phone’s app store. While these are like standard credit checks, there is no limit on how often you can check them. They also don’t incur charges overtime or require an initial fee. You can assess your score regularly which is convenient and helps you stay focused. Apps like Credit Karma can help you understand your credit score and advise you on how to improve it. These are regularly updated so you can stay in control and change your spending habits.
This is an ideal method if you’re on a tight budget but want to do what you can to improve your score.
So instead of accepting your poor credit score, use these tricks and do something about it today! It shouldn’t take long to get approved and make your dreams of a retro kitchen or brand new car a reality.