Any time a loan provider denied your loan application. Do you have the same experience of denying a credit card application? One of the main reason of denying your loan application or credit card application is your poor credit score. Your credit score shows that whether you payback the loan without dues or will you pay the credit card bill in time. Your utility bill payment and pay back histories noted by credit reporting agencies. They will provide information when required by loan providers or credit card providers. Your poor credit score reduce the possibility of getting a loan and also reduce the chance of getting a new credit card.
Credit card suppliers and loan providers may approve your application only with high interest rate, because they consider that you are a high risky person to pay off loan amount or credit card bill. Some time a telephone company also may deny your application for a new connection due to your poor bill paying history.
Do not worry, you can improve your credit score by completing the following tips.
Collect your credit report from various credit bureaus. From this credit report, you can know the negative points which adversely affect your credit score. You can compare your credit scores from different credit score agencies. Compare why your credit score is extremely poor. You can solve those and can improve your credit score. There may be any mistake which you have already paid off a debt, and the agencies recorded it as an unpaid debt. Correct it by sending them the proof of payment with a letter to rectify the error. If there is such a mistake, the credit bureaus are liable to rectify it, when they realize the mistake.
Pay off your debt. Pay off your unpaid debt and credit card bill wholly or partly. It will help to increase your credit score.
Pay all your bills in time. This is the best way you can improve your credit score. Pay off all your bills including credit card bills and utility bills in the due date or early. It will automatically and quickly improve your credit score.
Get a new credit card. Try to get a new credit card and it will increase your credit score even if you are not using it. Just keep it will you as an active credit card. Your credit score will automatically increase.
Do not use full credit limit of your credit card. You should not evacuate the full credit limit of your existing credit card. Use only 60% to 70% of the total credit limit. If you empty your credit card limit every time, your credit score will be less and keep in mind that pay the full credit card bill in time.
Do not close your unused credit card. If you already have a credit card and you are not using it, do not close it. Keep it active and it will help you increase your credit score.
Increase your credit limit other than open a new credit card. If you have two or three credit cards of different companies, do not add one more credit card. Try to increase the credit limit of the existing credit card. This also improves your credit score.
To improve your credit score, and get approved a newly applied loan or a new credit card, pay off all your bills in time and prove that you are punctual in paying off your loan and bills. The loan approval and credit card companies and loan providers come to you with new offers and you application will not reject any time.