In today’s world no individual or corporate can think of surviving and growing in life on own or family money. Therefore it becomes imperative that at one point or other in life, some kind of credit is needed by everybody whether for investment or to meet an emergency. Therefore it is very important to have a good credit rating and no one wants that his credit history should reflect negatively because it can make the things really difficult at the time of crisis. With a negative credit history, most of the lenders shy away from giving a loan to such people and those who do extend a loan will do so at a very high rate of interest.
Most defaults are Unintended
A thorough analysis of the defaulters shows that most of the times, the defaults happen because of the circumstances or carelessness and not because of the bad intentions of the borrower. Sometimes, in spite of the best intentions, the things go out of hand and the credit history goes bad. Still the good thing is that the credit ratings can be repaired or improved with a lit bit of conscious effort and disciplined planning.
Review the Credit Ratings Regularly
One should pay attention to the last activity dates on the credit report. The collection agencies may juggle with these dates according to their purchase of the debt of the person. This is an illegal practice but if the attention is not paid to this, it will keep reflecting in the credit report like that only and will adversely affect the credit rating. Such things have to brought to the notice of the rating agencies and should be got corrected. One should also check for mistakes and discrepancies because there is always a possibility of getting the credit information mixed up or there could be a misuse of the identity of the borrower by someone else.
Do not become a Co-borrower
During the process of repair of credit rating, it is advisable not to become a co-borrower with another person unless one can pay off the same, in case of need. Because if the other person doesn’t pay off the loan or defaults on payment, it would reflect negatively on the credit rating of the co-signer, as if it was his loan and not paid in time.
Pay on Time
This is another very important factor in improving the credit score. Any new loans taken by a person should be paid well in time with a lot of discipline. A timely repayment of small or big loans, certainly adds to the credit rating of the borrower.
Add a Note to the Credit Report
As it happens many a time in life, in spite of the best efforts and intentions of the borrower, the loans can’t be paid in time. If the reasons are legitimate and justified, one can add a note to the credit report of self, so as to clarify why a particular amount was not paid or refused. This way the prospective lenderscan have a better idea about the whole thing and improve the chancesof borrower of getting a loan in case of need. If you want to more update please visit http://www.fastloantoday.com.au/
