Consider a situation where you have not any option to get low cost loans. You have no good credit history or your credit history is bad and you need to get a loan at an affordable rate. Sad to say, bad credit history could mean paying higher interest fees. While there are many crisis situations when bad credit loan could work to your advantage, but more often than not it is certainly a vicious cycle to be trapped in bad credit history. So, any opportunity to improve you bad credit history is something that you should lenders and your credit history is more important first. Here are some ways on how to do credit repair and hopefully get the chance to pay less for payday loans online.
If you want to improve your credit history, then pay your bills on time and regularly. A huge percentage of your credit score are based on how you pay off your bills. If you want to scam with lender or you are a past due payer, then you must do your best to bring your bills into current. However, if there are judgments and collections if your credit history then you should pay off those debts.
You have to understand that even if you have paid off a past due account, it will still reflect as “paid delinquent” for the next seven years of your credit history. Paid delinquent accounts should be kept current for at least six months in order to improve your credit score. If you don’t have any monthly payments, it does not necessarily mean that you will get a good credit score. In fact, you may not have a credit score at all. If borrowers will keep his payments regularly that will surely improve your credit score.
First of all check your credit card balance. Your good or bad credit score also depend on your credit card balance or limit that you have. It is advisable that you keep your balance at least 40-45% credit limits. Sorry to say, Credit Card Company provides low credit limits and it could mean an increase in the percentage of card usage. This situation may cause your credit score to go down and it could mean higher interest fees on your next loan.
Some credit experts would recommend that you do credit card balance transfer from one credit card to another. For instance, you have to credit cards with five thousand dollar limit and you have used up four thousand dollar on one card and you have not used the other one yet. It will be better to transfer the 40% of usage. You can expect your credit score to go up if you do the balance transfer. Though, cash transfer is not advisable all the time and it’s a peer-peer basis.
Time Duration to repay the borrowed credit. It is good if you do not close your previous accounts and this is the most common mistake committed by credit card providers. If you want to close previous account, it is better than to keep the open previous account. You should use this old account at least once a year and make sure that you pay it soon. If you aim is to improve your credit history, then leave your previous credit cards open so that you will not lose your credit score.