TRENDING CHOOSING A LOAN AGENCY OR LENDER
TRENDING CHOOSING A LOAN AGENCY OR LENDER
09.16.2020 / Borrowing « Back to all articles
Rebuilding Your Credit After Debt Resolution
When debt obligations become too much for you to keep up with, settling the debt might provide the best solution. Unfortunately, it does have a downside; it can negatively impact your credit score. Even though the creditor agreed to the settlement, the fact remains that the amount offered did not fulfill the original contractual agreement, which leads to a ding on your credit history. The good news is that there are several steps you can take to rebuild your credit.
1. Get a Copy of Your Credit Report
There are many free apps available that can provide an overview of your score. Most banks offer access to these apps so you can view a snapshot of your credit score. Within 30 days of settling your debt, it’s a good idea to check your report to ensure it reflects the account update. For more detailed information, request your free annual credit report from any or all of the three major credit bureaus.
2. Piggyback on Another Account
Settling one debt might still leave several others under your control. This isn’t always a bad thing. If you keep those accounts in good standing, they can help you build your credit score faster. If you have no accounts remaining, however, consider asking a trusted family member or friend to add you as an authorized user on their account.
3. Pay Your Bills On Time
When you pay your bills on time, not all accounts get reported to your credit history. However, if you lapse, the creditor might report the delinquency to the credit bureaus. Subsequently, it’s a good idea to keep up with all remaining bills to avoid another negative remark on your credit history.
4. Get a Small Loan
Your credit mix plays an important role in your credit score growth, so store cards and credit cards are not enough. What you also need is an installment loan. The good news is that there are many credit builder loans in the $500 to $2,000 region that you can take advantage of. Note that some do require putting in the money upfront.
5. Apply for New Credit
After following the first four steps above, your credit score will finally be on the road to recovery. This is a good time to start applying for new credit. Sometimes your credit builder loan company will offer you a card after a few months of on-time payments. Your existing bank might also pre-approve you for credit. Keep in mind that the terms on these accounts might not be as favorable as before the delinquency on your credit score.
While you put in the hard work to rebuild your credit score, you might find that accessing credit becomes difficult. When this happens, our Money Mart personal loans can provide the capital boost you need to help make ends meet.
Use These Tips to Ensure Your Mobile Cheque Cashing Goes Smoothly
09.16.2020 / Borrowing « Back to all articles
Rebuilding Your Credit After Debt Resolution
When debt obligations become too much for you to keep up with, settling the debt might provide the best solution. Unfortunately, it does have a downside; it can negatively impact your credit score. Even though the creditor agreed to the settlement, the fact remains that the amount offered did not fulfill the original contractual agreement, which leads to a ding on your credit history. The good news is that there are several steps you can take to rebuild your credit.
1. Get a Copy of Your Credit Report
There are many free apps available that can provide an overview of your score. Most banks offer access to these apps so you can view a snapshot of your credit score. Within 30 days of settling your debt, it’s a good idea to check your report to ensure it reflects the account update. For more detailed information, request your free annual credit report from any or all of the three major credit bureaus.
2. Piggyback on Another Account
Settling one debt might still leave several others under your control. This isn’t always a bad thing. If you keep those accounts in good standing, they can help you build your credit score faster. If you have no accounts remaining, however, consider asking a trusted family member or friend to add you as an authorized user on their account.
3. Pay Your Bills On Time
When you pay your bills on time, not all accounts get reported to your credit history. However, if you lapse, the creditor might report the delinquency to the credit bureaus. Subsequently, it’s a good idea to keep up with all remaining bills to avoid another negative remark on your credit history.
4. Get a Small Loan
Your credit mix plays an important role in your credit score growth, so store cards and credit cards are not enough. What you also need is an installment loan. The good news is that there are many credit builder loans in the $500 to $2,000 region that you can take advantage of. Note that some do require putting in the money upfront.
5. Apply for New Credit
After following the first four steps above, your credit score will finally be on the road to recovery. This is a good time to start applying for new credit. Sometimes your credit builder loan company will offer you a card after a few months of on-time payments. Your existing bank might also pre-approve you for credit. Keep in mind that the terms on these accounts might not be as favorable as before the delinquency on your credit score.
While you put in the hard work to rebuild your credit score, you might find that accessing credit becomes difficult. When this happens, our Money Mart personal loans can provide the capital boost you need to help make ends meet.
