Credit ratings are all important for those planning to apply for a home loan or some other type of loan. One’s credit history can be a major factor in having a loan approved or rejected. Those with blemishes on their credit history can use the following tips from the Economic Times to improve their credit rating and history.
Check Credit Report
Every credit-history repair begins with a credit-report check. The consumer should know what is on their credit history or report. Review the report for any errors, and make sure that any errors are rectified as soon as possible by contacting the credit agency directly.
Regular Repayments and Pay Down Debt
Avoid missing any repayments on outstanding loans or bills. Continue paying these on time and be consistent in making repayments or payments on utility bills, credit cards, and any other loans. Pay down as much debt as possible, and prioritise credit card debt over other types of debt as a general rule.
Cut Down Spending and Credit Card Debt
At the same time, eliminate unnecessary spending by following a sensible budget. Avoid any major purchases on the credit card if these will not be paid off immediately. Cutting down spending will free up more funds to repay any outstanding bills and debts.