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Three Top Tips for Securing Good Credit Scores and Worthwhile Loans

Credit scores are taken into account when applying for new credit cards and certain loans such as mortgages, making them an important part of your financial makeup. Not all loans require information on your credit history, but it is worth keeping on top of your score nonetheless.

As well as exploring a type of loan that does not require credit scores, these top tips will prepare you for cleaning up your credit record and moving towards a more secure financial future.

What preparations are needed?

Generally speaking, your credit history will be improved by simply paying off debts and loans on time, ensuring your full rent is always paid and not missing your credit cards’ deadlines. Proper planning, organization and preparation are key to maintaining a good credit score, as disorganization and an inability to manage finances could see you tumble into trouble.

1.   Have a free and clean car title

This tip is useful for borrowing money in the form of car title loans. These loans do not require your credit history as their terms depend on the value and condition of your car, your vehicle’s title will be placed in the hands of the lender until your final repayment, and they generally won’t affect your credit score for the future. This can be beneficial to those looking to take out a loan who do not wish to compromise their credit score in any way.

Having a free and clean title will permit you to take out one of these loans via, providing you with a quick and simple way of borrowing money.

2.   Check your credit report annually

If you are more inclined to take out auto loans, or another type of loan that will require a good credit score, then you should be interested in checking your report annually, or whenever you have just paid any large outstanding bills.

This will allow you to stay on top of your credit score, rectifying any damaging factors before they become an issue. The basic steps to keeping this report clean are to pay back your credit card bills in full and on time, to make your mortgage payments promptly and to not exceed your loan amounts.

Generally, not all debts show up on a credit report; many are deleted around seven years after you initially defaulted. While this may clear you of any historic misgivings, if you are still behaving financially irresponsibly it will not take long for your credit score to begin to fall again.

3.   Pay rent on time

Finally, pay your rent on time. It surprises some that this can affect your credit score as, unlike a mortgage, it is not a loan. However, credit reporting agencies, who will report on your score to future lenders, often check your rental history in order to provide a better image of your behaviours and trustworthiness. For this reason, staying on top of rental payments, and being open and honest with your landlord if you cannot,is another essential step towards better credit and loans in the future.

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