There is nothing more embarrassing than being denied credit. As if it isn’t bad enough hearing the sound of the machine as it declines your application, the staff member is also present along with, what seems like, the entire store staring at you until you quickly make your way out and vow never to return.
Below are some great tips to help you avoid this situation again.
Consolidate Your Debt
If you are paying each of your credit companies the minimum amount each month then you aren’t improving your financial position and you definitely aren’t improving your credit score.
Instead, consider moving your smaller debts to a purpose created debt-consolidation loan. These loans work by taking on your smaller debts and combining them into one amount with one monthly payment. Often, these loans will come with an introductory interest rate with you can further take advantage of.
If you choose this option, however, be sure that the rate that you will pay once the introductory rate finishes is affordable within your budget and won’t result in you actually paying more.
Lower Your Line Items
If your home insurance contract is about to end, speak with a range of providers and look for a new offer which can lower your monthly charge. If your cell phone service costs you too much, check the Groupon Coupons page for Verizon to find an option which is better suited to your lifestyle.
Of course, this tip isn’t limited to these two ideas. If you have any recurring charge in your budget, look at creative ways in which you can reduce their costs.
Speaking of Budgets
When it comes to budgets, the worst thing that you can do is create one which is simply not viable. For example, if you don’t’ include an allowance for entertainment then you will simply just use your savings each time that you want to go to the movies, resulting in you blowing your budget and not caring about the rest of the month.
Instead, allow yourself a small amount to spend each month on something personal or for entertainment purposes that will appease your need to shop. This way, when you do buy something nice for yourself you don’t’ lose confidence in your budget and simply stop using it.
Pay Your Bills!
Yes, we know, not paying your bills is the reason why you have bad credit. However, there is no bad time to change your habits. Your credit score is made up of many factors, one of which is how often you incur late payment charges.
For this reason, switch to options like direct debits where the full amount is taken from your bank account before you have a chance to spend it. If you want to take the tip even further, create a separate bank account which you deposit your apportioned bills and charges funds and use this for your direct debits.
Of course, be sure that you choose an account which doesn’t allow you to easily withdraw cash using a card.
All of these ideas combined can do wonders to help you improve your credit rating and creditworthiness.