The Most Unique Ways of Improving Your Credit Score after getting a logbook Loan
Having poor credit score is perhaps the most precarious situation for UK residents. You are exposed because the avenues for raising credit remain locked from high-risk parties. Banks will look at you with suspicion and decline any application at the earliest possible instance. The only options for raising funds will come with high interest and risks. One of these methods is the logbook loans. Unlike the conventional loans, logbook credit has drawn people deeper into the sea of financial trouble when not handled properly.
To avoid getting into the same danger, you must start working on personal credit score immediately. Here are four simple methods that will help to raise the credit score fast.
Borrowing from personal account
One of the most crucial factors that pull down personal credit score is bad history. If you have been borrowing and defaulting most of the loans, other financial institutions will shy away because similar situations can recur. However, you should consider borrowing from a personal account and clearing as fast as possible. Most banks will not decline this request because they are not risking their cash in any way.
Checking and correcting credit report for errors
The agencies given the mandate to compute people's credit history do not have direct access to crucial data. Therefore, they rely on third parties such as banks, mortgage companies, and insurance firms to collect info and calculate the score. Often, third parties fail to remit information on time resulting in inconsistencies and errors. Others are working hard to address the sharp competition in the UK financial sector to the extent they forget remitting clients details to credit reference agencies. Therefore, by simply checking the report, you can identify these errors and correct them to improve the rating with a significant margin.
Clearing all utility bills on time
The common argument put forward by many people is that credit score can only be pulled down by bank loans. However, even utility bills can pull the rates down significantly. If you fail to clear the utility bills on time and a recovery agency is contracted, the detail of defaulters will be captured and forwarded to the credit reference agencies. This will pull down the credit score.
Austerity measures to raise cash for clearing loans
Your credit score will not improve unless the current loans are cleared. Now that you have an additional loan, the logbook loan, the effort to become debt free should be intensified. You can only be sure of achieving this by adopting austerity measures in personal lifestyle. Some of the main austerity measures include using the same car with your wife as opposed to two when going and coming from work. You could also consider acquiring home fitness facilities as opposed to paying monthly charges to the fitness centre.
When you take a logbook loan, it only adds another huge responsibility on the shoulders because it has to be cleared within strict deadlines. By using the outlined four methods for improving the credit score, you will raise the chances of getting cheaper credit from banks in future. You will also be eligible for a mortgage, insurance, and phone contracts.