A low credit score can be costly and stressful especially if you intend to secure a personal loan from a money lender in future. As much as a low score could be damaging, it does not mean the situation will remain that way forever. There are certain things that you can do to improve the credit score.
First, ensure that you get your credit reports and familiarize yourself with the details. You cannot improve the score if you are not aware of the areas that you need to work on. The credit reports will provide the performance of the various accounts. This way, it is easy to identify the accounts to work on. If you come across an error in the reports, do not hesitate to dispute it since it can hurt your score unnecessarily.
Your payment history accounts for about 35 percent of the score. For this reason, you should clear any outstanding payments. It would be better to pay up before your accounts are charged off, as this will reduce your credit score. You may want to speak to your credit card issuer over missed payments so that your accounts read that you have always been prompt in making payments.
For as long as you are trying to repair your credit score, avoid applying for new credit or a personal loan Singapore. This is because any credit inquiries will end up hurting your score. If you open a new credit account, this will lower your credit age, and consequently reduce your credit score. Lower credit rating might lead to higher interest rates.
Focus on actions that will lower your credit card balance. For instance, avoid making new purchases using your credit card. If you can, use cash to make purchases rather than your credit card. It would be advisable to avoid some purchases entirely and save the money to offset your credit card balance. Reducing this balance will go a long way in improving your score.
If you are having trouble making your payments, contacting your creditors would be a good idea. Most people are not aware that calling your credit card issuer can be of enormous help. Most of them have temporary programs for clients having trouble making their monthly payments. Such programs often reduce the amount of monthly payments until the client is well off again.
If you have any debts, make sure you start paying them off. This will improve your score significantly since debts account for 30 percent of your credit score. Here, you can make sacrifices such as selling some of your personal belongings in order to raise the money to settle debts. This will be worth the sacrifice and you will no problems securing a sg personal loan in future.