It could be that you want to plan a wedding, get a mortgage loan, take out a car loan or grow funds for when you retire. If this is the case, enhancing your credit score needs to be a top priority.
The Credit Score is indicated using a number that shows moneylenders how likely a borrower will pay back their debts as well as their probability to default. This is guaranteed to impact your borrowing for those big-ticket items. Hence, the higher your credit score, then your chance of obtaining the personal loan you need is increased.
Below are 5 tips that will help you improve your credit score when it is not is good shape.
Always Pay Your Bills On Time
Any missed credit card debt payment can have the longest and greatest lasting impact on your score. When the more current the missed payment happened, the bigger that effect will be. Also the more the missed payments you will have, then it can take you much longer to recover. The recommendation here is clear: At all times, pay your credit on time.
The money lending institutions in Singapore will determine your level of credit risks using the following elements:
- How you repay your card debt each month
- How you use your credit card to charge purchases
By settling your outstanding credit card debts in full each month will help you in maintaining your credit rating as well as build a healthy credit score. This can make it possible for you to utilize loans to work a lot harder for you, instead of becoming enslaved to credit. When possible, make a point to repay the dent in full since you already know, that any rollover and even outstanding balances may be charged at a rate of 24 percent per year.
Consider scheduling a fixed date each month when you check all the bills. In maintaining consistency of repaying bills punctually is critical in keeping your credit score healthy. It is just a month after month plan of making on-time payments. Doing this can greatly help enhance your credit score more so when you are making an effort to offset any late credit card debt payments. Making the on-time payments can have positive behavior favoring you moving forward.
Always Have Sufficient Credit Activity
Every now and then, people want to know why they are not able to get credit even when they do not have unpaid debt at all. When you take a look at your score, you could be having a CX Grade. This might seem contradictory, however, it is not sufficient enough to just repay credit card bills yet not use them again.
The main purpose of holding a superb score is to help ascertain to your moneylenders that, as a borrower, you are a trustworthy user of credit. However, when you fail to use the credit, moneylenders and banks are not able to make an assessment on it. When your credit activity is “insufficient”, there will be very limited content on things like credit applications and account status records to conclude a score.
Luckily, there is a solution in such a situation, however, it needs to be treated responsibly. Utilise your credit cards every now and then, borrow within your set credit limits and create a sustained record of timely repayments. Just maintain your credit activity active.
Avoid Making Several New Credit Requests Within Short Spans Of Time
As there exists no fast and hard rule regarding this, however, sometimes a couple of new credit requests will shift you from being a responsible borrower to an untrustworthy one. This is from moneylenders’ point of view. Even then, borrowers need to recognize that every licensed moneylender and banking institutions have various criteria and sets of requirements to satisfy.
Therefore, remember that every time you request for new loan facilities, like a personal loan, it will put inquiries in your credit report. Having many moneylending applications within short time spans will have harmful effects on your score.
Assess Your Credit Record Annually And Have Any Errors Rectified
Once you get your credit report from the Credit Bureau, the first thing you need to do is go through it. Thoroughly check your report and have it fixed when you pick out a mistake or any other elements that will have caused your credit score to go down.
It is recommended that you check your record at least once each year. Then take measures to fix it as well as follow up to make sure errors get resolved. Otherwise, that error can remain on the report and might possibly harm your score.
When you want to dispute the accuracy or the completeness of any part of information like the account status, past inquiries, and even overdue balances. You could get in touch with the Singaporeans Credit Bureau (CBS). Then CBS will place a notice on your credit file indicating that this credit information is being disputed thus it is being investigated.
Devote To Keeping It Simple And Enhance Your Credit Score
Any default records in Singapore remain on your report for three years after negotiated or full settlement. Also, bankruptcy information is maintained for five years from the discharge date.
It is okay to have made some mistakes in the past. But in order for you to find a lasting solution to your problem, you realize that you will need to dedicate yourself to following for a long-term solution:
- Always pay your bills promptly, and maintain your loan balances low
- Have sufficient credit activity
- Avoid making several new credit request within short time periods
- Assess your credit record annually and have any mistakes rectified when you find any
In following the above-named ways your score will come out fine. Many people are inclined to over thinking credit, yet it is that easy. It involves prioritizing what is crucial to you.
Improve Your Credit’s Health…
Everyone will not have an outstanding credit record however the great news is, that it is totally within your control and power to improve your credit’s health.