You already know the answer before the dainty, quiet, yet proud bank manager comes through the door. “Declined” is displayed on top of the loan application in a dark blood red. You tried your best but your credit score just wasn’t high enough to prove the bank of your responsibility to pay off that loan in the time allowed. Dismayed, you head out the door wondering what you are going to do next. Well look no further! In the remainder of this article, I am going to give you two simple tips on how you can raise that credit score just enough to push you pass that formidable bank loan threshold.
I know this first tip may sound simple enough but pay off those credit cards! This may seem hopeless especially if you have accumulated high outstanding debt on multiple credit cards. However, the best step you can take towards achieving this goal is to make a good solid budget. To make a good budget, take one whole month and track every expense you make, from paying bills to that Extra Large Chili Cheese Fry at the local burger joint. This means you will need to keep track and organize your receipts. Next, decide which expenses are mandatory for you to spend to stay alive and the ones you can cut out of your budget. If you are not able to cover all of your mandatory expenses with your current salary, it may be time to find a second job or lower your rent by finding a cheaper apartment or television service. Once you have made a budget that fits your mandatory expenses, see how much income you will have left over and use that to pay off your credit debts one by one and make sure you keep it off!
The second tip is not only simple as well but it’s also short and sweet! Pay your bills on time. By simply avoiding your living expenses, such as rent, TV, internet, water, electricity, etc., you are drastically reducing your credit score. Not only that, but you are also showing potential loaners that you can’t even pay off your own living expenses, let alone the loan deal you. To fix this problem, make a budget as before!
My granddad always liked to say, “Budgeting will get you farther in life than a college education.” Now, that might have held true back in the 1950’s, however, it still holds true today! If you are willing to track your expenses and income, then you will not only be able to pay off your already existing debt, but you will also be able to continue to keep it off, drastically improving that credit score!