Credit unions offer some of the best rates personal loans. While these financial institutions tend to be more accommodating to people who don’t have perfect credit, a decent score is still needed to qualify for Low-Interest Personal Loans. Here are a couple of ways to improve a poor credit score and get a great rate on a personal loan.
Start Paying Bills on Time
A person’s payment history accounts for about 35 percent of his or her credit score, which means tackling this issue can improve an individual’s credit enormously. Regardless of how bad the payment history is, it can be overcome by a current record of on-time payments.
Start with accounts where the payment is the most past due. For instance, pay the bill that is 90 days behind and then pay the bill that’s 60 days behind and so on. Once caught up, make sure to make payments on time each month going forward. Being late even once can push back any progress made.
Get Added as a User on Another’s Credit Card
Another thing that can boost a person’s credit score is getting added as an authorized user on another person’s credit accounts. That individual’s good payment history on the account will show up on the authorized user’s credit report, which can provide an almost instantaneous improvement.
There’s no need for the authorized user to actually use the account. However, it’s critical for the primary account holder to have a good credit score and habit of paying on time. Otherwise, any missed or late payments will also show up and potentially hinder efforts to improve the score.
Only stay on the other person’s account for as long as it takes to get approved for the loan and/or improve credit in other ways. Additionally, ask to be removed as soon as it appears the person has a hard time paying his or her bills to avoid having all the work of improving the credit score undone.
For more tips on increase a credit score enough to qualify for Low-Interest Personal Loans, contact Pearl Hawaii Federal Credit Union.
