When people get no credit check phones, the next step is building a solid financial history that can anchor higher scores. Though some people find it a monumental task; the truth is that you can still achieve it, and rather fast. In this post, we share expert tips on building your credit score faster after getting no credit check phones.
Pull your credit score report and correct errors
Every time that your credit score is referred to by a phone company or other credit organization, there is a risk of errors because the data is sourced from third parties. Banks, insurance companies, and other institutions can be late to submit your records or fail altogether because most of them have to focus on daily operations. Most of the people who go for their credit reports after getting no credit check phones establish that they have omissions or errors that push the score several points higher after correction.
Take short loans and clear them promptly
Your credit repayment history contributes about 35% of the credit score (whether bad or good). Well, though there is very little you can do about the past, you can add layers of good new things to tilt the score upwards. One of the easiest and fastest methods is taking short loans and repaying them as fast as possible. The activity will be reflected on the credit report and the score will start shifting upwards.
Clear your loans one after another
The amount you owe contributes to about 30% of your credit score. Now that you have gotten a no credit check mobile phone, you can clear all the debts. One of the fastest methods is the Snowball Strategy. This method involves reviewing all the credit that you owe to establish the lowest amount that can be paid on each. Then, the extra amount (after paying the minimum on all loans) is directed to clearing the loan with the lowest balance. Immediately the loan with least balance is cleared, all that was going to it is committed to the next loan with the lower balance. Within a short time, you will only be left with the loan with the highest balance.
Using credit cards as opposed to closing them
While credit cards have very high interest rates, experts advise people to use them to their advantage when building on credit score. For many people, the first instinct is closing the cards and forgetting them completely. However, this will only drag the credit score lower. Because closing the card does not erase the history, the best thing to do is repaying the loan so that elements of good history on the card can still anchor a better score. Then, use the credit card regularly and avoid overspending. For example, you can set spending limits and follow your credit card statements carefully to correct errors.
Knowing how to improve your credit score after getting no credit check mobile phones is very important. You definitely do not want to further aggravate your credit score situation by getting deeper into debt. Make wise financial decisions and work on improving your debt situation every new dawn. If you use these expert tips, rest assured of a better credit score and financial free life. Besides, you will no longer be worried of being denied a mobile contract in the future because of poor credit score.