How to Manage Loans and Improve Credit Score

From time to time, many people fall under dire financial constraints and are forced to borrow. Unfortunately, unforeseen occurrences sometimes lead to late payments or defaults that affect your credit score. As negative credit scores are available as a public record, it’s safe to assume that they affect many areas of your life. As expected, it’s only natural to want to improve your credit scores. Below are five ways on how to manage loads and improve credit scores.


1. Review Your Credit Report

To fix your credit report, you first have to know how it is. Fortunately, you are entitled to requesting a free credit report, which you can quickly request from a credit score agency. Make use of this report and review it carefully and see what you need to do to fix it. Though this will not boost credit score overnight, it is the closest thing you can get to a quick fix. Aim to dispute any errors that you might find. Additionally, take steps to alert reporting agencies of any outdated information or wrong information about your credit scores. Overall, this will give you a bearing of your financial state, allowing you to note where you need to improve.


2. Set Up Payment Reminders

Ideally, a simple way of how to improve credit score is to start paying off your outstanding loans. Make a note of all bills that you have in a journal or planner and mark them accordingly. Embrace the use of reminders to alert you on any upcoming payments, as this will eliminate additional late fee payments. Regularly making payments on your loans can raise your credit score within a few months and make you eligible for other financial opportunities.


3. Pay More Than Once in a Billing Cycle

Often, people assume that they need to make at least one payment a month for their credit scores to start improving. However, a simple way of how to increase credit score quickly is to make even more payments. If you can afford it, aim to make bi-weekly payments to lower your credit utilization. Though not a guarantee, a negative credit score can be removed in just two years instead of seven full years.


4. Contact Your Creditors

A simple way of raise credit score instantly is to repair the relationship you have with your creditors. After reviewing your report, make quick arrangements to pay off your debts. Make a plan on how you can fix any late payment deadlines should you fall short on funds. Consider if you qualify for loans by searching sites like bad credit auto loans Canada to offset a pending investment so as not to have another default. By quickly addressing overdue payments, you will easily avoid additional adverse effects on outstanding balances.


5. Apply for New Credit Sparingly

Even though you might qualify for new credit,   try and avoid doing so if possible. Opening new credit affects your credit scores further as it leads to additional inquiries that stay in your credit score for two years. If necessary, open a new account after some time to repay outstanding loans and reduce instances where you seem like a serial defaulter. Additionally, when it comes to unused card accounts, don’t hasten to close your accounts, especially if they have a longer and better credit history. Instead, opt for paying off and closing newer credit cards to improve your credit scores.



Bad credit scores like delinquencies and bankruptcies reports stay in your credit report for as long as seven years or more. As expected, this means that improving your credit scores does not happen overnight. However, by applying the various management strategies, you can quickly improve your credit report and improve your credit ratings for a better future.

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