As we witness different seasons every year, we get ready for each season (summer, fall, winter and spring) as they turn around. Right from our daily attire to food, the season of the month decides how and what we would lead our lifestyle to a large extent. Many folks even plan their holidays according to seasons. Likewise, you need to be prepared to good and bad financial decision all through your life.
Be it accumulated debts or irregular credit history; you need to know how to better manage your unsecured loans and credit bills. Most of the times, we enter debt traps unknowingly. No one plans for bad credit history after all. While it could be easier to manage the loan repayments, it could take years to repair red flags on your credit report.
Right from late repayment of a loan to rolled over credit card balance to high credit utilisation, you would need a step by step approach to improve your credit health. You need a plan to fight all financial vices at one place. Right from cash shortage for urgent expenses to depleting low credit score, you need to follow some time tested methods to stay afloat.
- Pull out your credit report
You must pull out your credit report from any of the top credit bureaus. You can apply it online free of cost. When you apply for your own credit report it is considered as soft credit check and would not be recorded in your report. Herein pay attention to weak points leading to red flags. Next you would need to take steps to remove each cause of red flag.
- Contact an FCA regulated loan advisor
Consider contact an FCA authorised loan broker. These licensed loan advisors can help you make the best decision according to your credit situation. Generally they do not charge any broking fee and share tailored loan advice for each borrower.
- Close very expensive loans; opt for cheaper alternatives
While looking for bad credit loans you must always opt for affordable alternatives. You can consider borrowing cheaper alternative. Manyatimes you can consider opting for secured loans to avail low cost loan. This is one way to leverage your assets for improving your credit health. As the broker assesses your credit situation they will help you find the best match.
- Never borrow more than what you need
As you decide to pledge your car or home for a cheaper loan, it is important to ensure that you do not borrow more than what you require. It is one of the common mistakes to borrower more today and regret it later on. Your entire prerogative here should be to ease your debt burden.
- Clear credit balance
In case you are running with high credit card balance, you must try to clear it on a high priority. High credit card balance can ruin your credit score faster than you could assume. As credit cards can hold interest rate higher than personal loans.
In all, improving your score is not a cakewalk. But it requires a lot of financial discipline and hard work.