10 Hacks To Improve Your Credit Score

It is important that you have as high of a credit score as possible, so that you can be approved for loans and get lower interest rates when buying a home and/or car, or even starting your very own business.
Believe it or not, but there are many ways for your credit score to go down without any warning. Here are ten instances where your credit score can take a hit, as well as ways you can fix or prevent possible problems from further doing harm from your credit history.

You have not applied for credit before; you need a history

When you apply for a credit report, review your financial history, and do so sporadically. You can find possible errors before you ever start to plan for an approval. You can start off with a good credit score or a bad one, and this really depends on you correcting any possible mistakes in your personal or financial history.

You’ve made too many attempts to obtain credit (credit applications)

Your credit history is not only based on how much debt you have as of now. When it comes to your credit score, your debt to credit ratio is very important. You can experience lower credit scores just simply by attempting to check your credit report often in a short amount of time. Only attempt to check your credit every once in a while.

You have changed your name (got married); Your new name could be a brand new credit file with no history

Credit scores are based on personal information within your credit file, such as your name and address. If for any reason you decide to change your name, you can get the slate wiped clean on your credit report. This can leave you will little to no credit history. Your credit report will likely be under your previous name. A tip to avoid this happening is to list any other names that you are known by on your application, that way your credit application will be linked to your existing credit file.

You change/move to a new address a lot

Moving may not seem like a big deal for your credit score but being inconsistent with your residency can actually take a toll on your credit. If you often change your address, you can find yourself being repeatedly denied a personal loan. Also, it’s important to provide your full and accurate address on each loan application.

There is incorrect information on your credit report

If you know for certain that specific information on your credit history in incorrect or inaccurate, be sure to change it, fast. You need to take a look at your score at least one time a year in order to make sure it is accurate avoid penalties towards your credit score. If there are loans that you are not familiar with, be sure to get to the bottom of them so that there are no errors in your credit report. If you are a twin you may see credit enquiries come through on your credit file that belong to your twin, so it pays to check your credit file for accuracy. You can request a free copy of your credit report from the three main credit reporters in New Zealand.

You make late payments on credit accounts (eg. visa card or a bank loan)

If you want a good credit score, then it is very important for you to pay your debts on time. If you fall back on credit card bills and car and/or house payments on a monthly basis, your credit will take a turn for the worse.

You make late payments on utility accounts (eg. power or phone account)

Of course, it is not only loans that you need to pay off on time. Monthly payments, such as utility bills, cable bills, and other expenses can affect your credit score if you are not quick enough to pay them. You cannot afford to miss your payments if you are looking to take out a personal loan.

You defaulted on your obligations (eg. a loan or credit card)

When you default on your payments, these instances appear on your credit report. In turn, this makes it hard for you to qualify for loans. Even if you can repay your defaults afterwards, these defaults will be documents for at least four years.

You got a court judgement against you

If by chance that you are identified as a defendant in court for a case of outstanding debt or bankruptcy filings, and lose the case, it will too affect your credit score.

You went bankrupt, filed no asset procedure (NAP) or filed Summary Installment Order (SIO)

Filing for bankruptcy and/or asset protection will also affect your credit score. The trick about bankruptcy is that the better your credit score, the bigger of a drop it will experience. Even though bankruptcy is meant to release your obligation from some debts, expect your credit score to be severely reduced or disappear completely.

Conclusion

To prevent a drop in credit score, be on the lookout for errors in your credit report, pay money that you owe to your creditors on time, and do not make any extravagant expenses that could affect you for the worse from a financial standpoint.

If you want to talk to us about applying for a loan please call Quick Loans on 0800 200 275 or simply apply online. 

Quick Loans can help you with personal loans, cash loans, debt consolidation and car loans.

This is not legal advice.

Credit Card Dangers: Don’t Sink into Credit Card Debt. Use a Small Personal Loan Instead

Credit cards come with inherent dangers. However, in emergency situations or to handle larger expenses you may be tempted to “charge it.” A small personal loan offers a safer option, protecting you from sinking into credit card debt.

Danger #1: Cycle of Unending Payments

Have you promised yourself to pay off your card each month, yet put it off paying the minimum payment only? Credit cards get reused which starts a cycle of unending payments. Interest and fees add up which increase the amount you originally paid for the items you purchased and decrease your ability to pay beyond the minimum, which never pays the card off.

The fixed payment plan of a small personal loan ensures the end is in sight. Your lending agency holds you to your promise of making specific monthly payments, removing the temptation to put it off or pay a bare minimum. And, with lower interest rates, loans keep your deals intact — you avoid paying well over the purchase price.

Danger #2: Unexpected Interest Rate Changes

Credit card interest rates fluctuate on the whim of the credit card company. These rates are variable which means the zero percent interest, promotional offer may leap to double digits once the promotion ends. This change could significantly impact your minimum payment and credit card debt.

Fixed interest rates on personal loans protect you against these rate hikes. The rate of interest on personal loans does not change. Plus, these rates typically start lower than those of credit cards. Fixed rates save you money and predictable payments help your financial planning.

Danger #3: Debt You Cannot Pay

The ability to charge until you reach your credit limit threatens to keep you in debt. Since credit card companies do not require you to pay the full charges each month, purchases and interest accumulate. Soon you are living well outside your means, living with debt you cannot pay.

Personal loans help you live within your means. No shopping sprees, regretted nights of partying or gambling binges which rack up unbudgeted expenses. A loan gives you a set amount of money to spend and a set plan for paying it back. Once paid off, a loan does not return to haunt you.

Solution: Personal Loan

By eliminating the dangers of credit cards, personal loans help your finances. They also protect your credit score. Your debt-to-savings ratio improves.

If you long to end your credit card debt, talk to us about debt consolidation options, and get out of the dangerous waters you are swimming in.

If you want to talk to us about applying for a loan please call Quick Loans on 0800 200 275 or simply apply online.

Quick Loans can help you with personal loans, cash loans, debt consolidation and car loans.

 

This is not legal advice.

There are a lot of people out there with excellent ideas for new businesses but unfortunately many of these fall by the wayside due to a lack of finances.

Everyday we’re exposed to businesses on the internet and featuring heavily in print and tv advertising. Many of these businesses would’ve needed some serious capital to pay for their stock, let alone their marketing expenses. We often wonder, where did they get the money to start up such a business?

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Recently some existing customers received a property law notice. They had falling well behind with their mortgage repayments when their income reduced substantially (self-employed building industry) after some of their post-earthquake projects were delayed.

They had never missed a beat with their repayments to us but really struggled with their mortgage and the bank sent them a property law notice. We assisted by paying the arrears, rates, insurance and the next few months of mortgage repayments.  We then put them in touch with an excellent mortgage broker who helped them re-finance their mortgage at a very competitive rate. We basically saved their home. It took a lot of effort to get them sorted out and they were very happy with the outcome.

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Christchurch loan company QuickLoans is pleased to introduce our new online loans website, which went live in August 2017.  We have listened to the comments and suggestions of loan clients over the last few years and have made improvements to the site that we feel will ensure this website loads faster and is easier to navigate. We are confident that the site is free from bugs and quirks that may have previously slowed down our valuable NZ loans clients. Jump online and apply now.

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Need a larger home loan deposit? The Reserve Bank of New Zealand recently implemented higher loan-to-value (LTV) ratios for the major banks which are effective 1 October 2013. This means if you are a buying a home you may need to have a larger home loan deposit (often around 20% of the purchase price). But don’t panic as we can often assist with a personal loan for a to ensure you have enough for your home loan deposit.

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We specialise in small business loans. In 2013 we’ve seen demand from small businesses that need loans to purchase equipment, such as work vans, tools and equipment as they gear up for the Christchurch post-earthquake rebuild.

Often the bank cannot or will not assist because they require all the recent financials and operating results, which may not be readily available or not even exist yet as the business is too new.

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