The borrower’s business card is his credit history. It is enough to delay the repayment of a loan without collateral once or fail to pay off on time on a credit card, and an impeccable reputation will be violated.
Because of this, the bank may refuse to lend if the money is needed again. Bad credit history turns a person into an unscrupulous borrower, an unwanted client.
Can you make your credit history improve? This is not an easy task, but it is quite solvable if you approach the matter with all seriousness. Moreover, there are several solutions. Let’s consider each of them separately.
Credit card processing
If a person in the past has delayed loans without collateral, it is difficult for him to count on getting a new loan. But they can give him a credit card.
In this case, you should actively use this card: make purchases in stores and the Internet, withdraw cash from ATMs (in this case, the bank usually takes commission interest). As well as actively borrowed money must be returned, avoiding delays.
All information about completed monetary transactions will be automatically transferred to the database where credit histories are stored. The rating of a disciplined, solvent client will gradually rise.
The disadvantage of this method is that, due to the constant access of funds, there is a temptation to spend more and more money from the card, to make rash purchases, going beyond financial capabilities. In order to prevent new debts, it is necessary to constantly monitor the balance of the account, to pay monthly for the current services of the bank (card service, SMS-notifications).
Making a deposit
Sometimes a bad credit history does not allow a borrower to receive cash at interest in the bank in which he would like. In this case, making a deposit is the best solution. But for this you need to have free funds in order to open a deposit account with a bank for a certain amount.
The presence of a bank deposit with the borrower indicates that he is solvent and will be able to repay the loan without collateral. The bank will have even more confidence in the client if he regularly replenishes the deposit. And then the potential borrower will be able to receive in this bank cash in the amount of 60-70% of his deposit. At the same time, the lender has a reliable money back guarantee.
This method is effective if the term of the deposit is at least a year.
Online loan
If you receive small amounts of money at interest remotely, you can also improve your credit history. Lending institutions operating online are usually more loyal to the choice of customers than banks and can easily provide an urgent loan. Money can be received quickly, and the repayment scheme is simple.
You need to take small online loans and pay them off in a few days, and so on several times. By returning money on time, you can achieve a significant improvement in your credit history: timely repaid loans will soon exceed the number of those in which violations were committed.
What not to do
These actions require responsibility, time and considerable effort. And I want to solve the problem easily and immediately. For this reason, proposals for a certain fee to “cleanse” all negative information from the credit history and even “cancel” existing debts and eliminate all problems with creditors look very attractive. This is what the so-called «anti-collectors» are doing.
It is impossible to do this in a legal way. Anyone who agrees to such «services» becomes a victim of scammers. The person will still be lucky if they just disappear in an unknown direction along with his money. It is much worse if the personal data of a gullible client is then used in financial fraud.
Trying to change your credit history, in no case should you cooperate with dubious organizations.
