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Repaying loan won´t assure good credit score

By Faye Mergel
Published: Monday, June 23rd, 2014

Studies have revealed that repaying loans on time will not assure a good credit score. This shows that the creditors have to find different ways to fix their credit score.  In fact, all the ways that exist to improve a credit score are the most prone to failure. Therefore, financial experts warn people to be careful with any advice that promises to quickly improve their credit score. According to them, the best advice to rebuilding your credit is to manage it responsibly. Financial experts suggest following tips will help you get it.

Your credit score fixing starts with your credit report. If you have not done so, ask for a free transcript of your credit report and look for possible errors. Generally, a credit report includes data used to calculate your credit score and may contain faults. In particular, check to make sure that it does not contain errors on late payments. If you find errors in one of these reports, send the report back to the credit report agency.

Making your credit payments promptly is one of the factors that contribute most to your credit score. Some banks offer reminders of payment through their online banking portals. They can send you a reminder by email or text message when approaching the expiration date of your payments. You can also inscribe in auto-loading payment system via credit cards. The loan payments are debited automatically from your bank account.

It is very easy to say to lower the debt. According to a new survey, the first thing you need to do is stop using your credit cards. Use your credit report to make a list of all your accounts, and then consult online or check recent account statements to determine how much should be in each account and what interest rate you are paying. Make a plan to pay the debts of the cards. Give priority to debts with higher interest rates.

You should pay attention to neglectful payments, even though it is only a few days delay. The recovery can have a major negative impact on your credit score. Try not to miss any payments. If you have problems to meet two ends, contact your creditors or see a reliable credit counselor.
This does not reconstruct your credit score instantly, but if you can start managing your credit entries and pay in a timely manner, your score should reflect it with time.  In addition, request the assistance of a credit counseling service to improve your credit score.

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