Borrowing money doesn’t just need to be about taking out a loan and repaying the money till end of term. It can also be about improving your current rating. If you’re planning to take out a guarantor loan anytime soon, for instance, you may want to add to your plan the revamping of your credit score. How do you do that? Below are some of the things you can do as borrower to turn things around for your poor credit rating.
Before completing your application for a guarantor loan, you might want to recheck your credit score just to cover all bases. Though it rarely happens, credit agencies also commit mistakes from time to time. As borrower, the responsibility to double check your report falls on your shoulders. You may check your credit report today at http://www.experian.co.uk
If you’ve confirmed your bad credit rating, you can proceed and apply for a guarantor loan. In general, you can borrow between £500 and £10,000 at terms starting from 1 to 5 years. Just remember to keep the amount within your means and always confirm that you can afford the monthly repayment. Once approved for the loan, the step below is how you can improve your credit score.
The only way to improve your credit score is by committing to pay on time every month. This is why borrowing only what you need and what you can afford is a crucial factor when applying for a guarantor loan. If you can keep up with this plan until end of term, credit agencies will see your due diligence and your improvements will reflect on your credit score.