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How to Improve Your Credit Report in 2019

In simple words, Credit profile is the history of a person’s financial life. Taking care of your credit profile will define your future credit requirements. Through your credit profile, a credit score will be generated. This score is out of 900. Higher the score, better it is for you. If you have a score that is on the higher side, getting any type of a loan, whether it is an instant personal loan or the best credit card would not be a problem.

What happens when your credit score is bad?

If your credit score is on the lower side, then it can have a harmful impact on your prospects of getting an instant personal loan or the best credit card.

What should you do in case your credit score is bad?

If your credit score is bad, that means you have either defaulted on payments, not paid bills on time and have unpaid debts on your name. Every negative strike on your profile will affect you in a very bad way. You must immediately resort to improving your credit score. Doing this will be a long time procedure and in time will help you clean your credit report and credit worthiness.

How can you improve your credit score in 2019?

It is very much possible to improve your credit score in 2019. By following these few basic steps, you can move on the path of improved credit worthiness.

Clear your older debts first:

This point does not mean that new debts taken are less important. But your prime importance would be to close your older debts which are more than 3 months old. Clearing them would stop the negative impact it has on your credit score. In case you feel you can make the payment within few weeks, then it will be wise to discuss this with the lender and ask them for some extra time to repay them. Asking for extra time will hold the negative impact on your credit profile.

Settle all debts:

Apart from clearing your older debts, it is also important to settle debts which are old and getting costlier with each passing day. In case you cannot repay it fully, you can talk to your bank and ask to settle the debt. Yes, this is a possibility and if the bank agrees, you can get the debt settled and written off. Of course this would be mentioned on your credit profile but most importantly banks will understand that you do repay all your debts.

Auto-Payment schedule:

One last attempt you can make to ensure all debts and bills are paid on time after clearing and settling your older debts is to keep an auto pay schedule. Through this, the discipline to repay your debts will get better and no default will take place. Your only concern here would be to ensure there are enough funds on the day of the auto pay.

Please note that improving means this is a continuous process and hence you must always keep paying your bills on time and not default anytime on personal loan payments or credit card bill payments. Improve your credit worthiness and this will ensure your future financial life will be more stable.

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