How To Come Over Your Bad Credit Score

Have you come across a situation when you wanted hard cash and you were refused by your bank? I can understand how traumatic and depressing it can be as I had gone through the same situation two years ago. I was absolutely taken aback to know that my credit score was not up to the mark. I did a thorough research and learned about the ways of improving the credit score.

When I consulted with a financial expert, I was shocked to know that a few late payments were the main reasons behind the low credit score. Moreover, there was no one to advice that having too many EMIs or easy monthly installments also led to the situation for me. I didn’t give up hope. I found out ways of recovering from my debts and improve my credit score.

Many of you must have gone through the same phase like that of mine. This blog can be useful for you to relate and get moving and winning over the situation.

Tips that I followed

Calculated the expenditure: Before you start paying off your debts and getting on track, you need to calculate what your monthly expenditure is over your monthly earnings. If your expenditure is more than half of your monthly income, it is high time to get it sorted. I had no clue unless I started with the calculation. Make a note of what the items are in which you spend every month.

Start reduction of expenditure: Now that you have calculated, start cutting short on the items that are not necessary to your living. It can be going for a movie every week, eating outside every alternate days and even ordering food at home. You can reduce these activities to once a month. That will be the first step to improving your score.

EMI subtraction: I had many EMIs running on my account. I decided to pay off somehow. I asked my parents for help. They understood the situation and also I contributed some from my savings. Instead of paying the bank every month, I started paying my parents back and filling the savings. These steps wouldn’t reflect on my statement and that’s how I took EMIs out of my statement.

Pay on time: Being unaware of the consequence and not paying on time can make you fall in thick soup. Now that you have known of the factors, you should start paying before the due date. I had the habit of missing the due date. On the contrary, now, I have the habit of setting a timer for my payments.

Stop using credit card: Credit cards are tempting but too much use of them can cause you loss. You can start using your debit card for small expenses unless it is too important and a huge amount. Stop the addiction of using credit cards like I did.

Following the above tips rigorously and responsibly, my score started going higher. You won’t believe in a short span of time, I have a decent credit score. Soon, I decided to apply for a home loan. Check Home Loan Eligibility before to apply.

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Can you guess what the banks had to say? We would love to offer you a home loan. I am on seventh heaven now as I have my own residence. Enough of paying for rents and being obligated to do certain things according to the landlord.

The best part about getting a higher credit score is leading a life of a King. I am so content and happy now. Being debt free and an individual with a better credit score make you feel extremely independent.

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