Debt and credit

What You Need To Do To Improve Your Credit Rating

fegrtgrtwgrtNo credible lender will give you a loan if you have a poor credit score. Those that do are most probably back street lenders and their loans usually carry hefty fees and huge penalties when you default on them. This, therefore, necessitates building and maintaining your credit score as high as possible very important. With a good credit score, you can get whatever loan that you need for your personal and business needs from financial institutions such as Lend Genius. In fact, the institutions will be scrambling to have you take loans from them as you represent good business. This brings other benefits as well since you can negotiate for even better terms from the lenders. So how do individuals go about improving their credit scores? In this piece, we highlight some of the measures that are helpful in this regard.


  1. Review your credit report regularly.

Everyone’s credit report is updated even now and then so as to include their most recent financial activities. If you’ve defaulted on a recent loan, your report should be updated to include this failing. If you took a loan and paid it off as per your loan agreement, your credit reports should also be updated to include this achievement. Your credit failings will lower your credit score and your achievements will improve it. When reviewing your credit report, you should check to make sure that all the entries in the report are factual and an honest representation of your credit handling ability. If there is a wrong filing, get the relevant authorities to make the necessary corrections. You should get them to correct any omissions as well.

  1. Make minimum payments on your loans.

If you have any loans, you should purpose to make the minimum payments as it has been stated in your loan agreement. You should also make the payments on time as late payments usually carry hefty penalties. Your lender will report this infringement and this will negatively impact your credit score. To improve your loan repayment abilities, individuals should maintain a good working relationship with their lenders such that you can easily ask for more time if you are having challenges with your finances. You can also ask your lender to send you timely reminders when your loan repayment is due. This will help you avoid making late payments and eventually ruining your credit score.

  1. Reduce your debts.

The more debts you have, the likely you are to default on one or several of them. This will negatively impact your credit performance and make it harder for you to secure loans later in the future and as such, individuals should make the necessary arrangements to reduce and eventually clear all their debts. To do this, you should list all your debts according to size and the interest charged on each. Pay the biggest loans and those with huge interest first without forgetting the smaller ones.

  1. Don’t remove old debts from your reports.

Most people believe that old debt is bad for their reputations and as such, they strive to remove them from their records. The minute they are done paying their car or home loans, they are busy on phone and email trying to expunge old debts from the records. This, however, is ill-advised since it is an individual’s performance with old debt that is used to determine their credit score and individuals should, therefore, ensure that all their past debts, especially those they handled well, be included in their records. A good performance with past debts could give an individual’s credit score a big boost and as such, individuals should resist any attempt to clear their old debts.

  1. Pay your bills on time.

Individuals looking to make major purchases might be obsessed with collecting as much cash as possible to the extent that they forget to pay their bills on time. A failure to pay bills on time damages an individual’s credit and when it goes on for a long period of time, it could ruin their credit scores.


You will need a good credit score if you want to secure a loan for your business or personal use. Use the above-mentioned tips to improve your credit score.

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