A poor rating will prevent you from getting a home loan approved. Also, you won’t have the opportunity to receive a lower interest rate. Learning how to raise your credit score is becoming more and more common amongst Aussies who don’t have the time to rebuild their rating over a couple of years.
When time is not on your side, you may have to look into extreme ways that could boost your credit rating and make you eligible for receiving a loan. Let’s see how you can raise your credit score fast!
- Take on a Loan
Applying for a loan and making regular payments will improve your score. Lenders will see that you are in fact a reliable client that can have a loan approved and then repay it without problems.
10% of your credit score rating is due to different types of loans that you’ve taken. Just like skipped payments lower the rating, regular ones will bring it up again.
- Diversify Your Loans
A home loan is different than a car loan or a personal loan. Although many people think that a higher number of loans will have the opposite effect and lower their rating, it’s the other way around.
Different types of loans that were taken and paid off are a sign that you are capable of managing your finances.
- Don’t Increase Your Credit Line
Always think if what you’re going to purchase is worth it or not. A credit line comes with a limit, but spending large amounts of money isn’t a good thing.
To avoid lowering your credit, don’t spend more than 30% of your credit card limit. Knowing how to raise your credit score is not only about how to improve it, but also about ways to prevent it from going lower.
- Look for a Rescoring
We can receive a copy of our credit report once a year if we ask for it, however it could get lost in the mail if you don’t check your mailbox that often. If you’ve lost it, ask for a new one and start analysing the data.
In many cases, people find out that their credit score is lower than it should be due to errors or miscalculations. If you can offer some type of proof that the report is incorrect, your credit score will go through a rapid rescoring in your favour!
- Co-sign a Loan
How to raise your credit score? Well, this can be done by co-signing for a family member or friend’s loan. If they have a good credit rating, it will improve your credit score as well.
This is not an easy decision to make, considering that if anything goes wrong, the creditors might come after you to pay off the debt. Also, if the other person’s score goes down, your own score will suffer as well.
We hope these tips have given you a solution on how to raise your credit score and that you’ll be able to increase your rating in no time!