When it comes to embarrassing moments in life, being rejected for a credit application is right up there on the horrible list. Why? Because it feels like everybody around you is staring and talking about your financial situation.
This can often leave many people to leave the store and never return, making absolutely no changes to their financial situation through shame. However, this doesn’t help anything.
If you have been in this situation before, below are some great tips to help you get your finances together and improve your credit score.
How Do You Look?
No, this doesn’t have anything to do with the mirror. How do your finances look?
Start by creating a simple budget which shows you just how much money you have coming in each month against how many outgoing expenses you have. Often, seeing their financial matters displayed visually is enough to see where they are going wrong and allow them to plug any financial leaks such as recurring late payments.
While they may only cost a few dollars, late payment and other similar fees are doing serious damage to your credit score and report.
Time for a Realistic Budget
Now that you have your basic budget sorted it’s time to adjust it so that it limits your expenses but also allows you to enjoy life. The reason to find a balance is to consistently save. A record of consistent saving is a powerful contributor towards a favorable credit score and is easily achieved if you budget right.
The trick is to allow for living expenses. For example, if you love going to the movies or you can’t get enough of the Groupon Coupons page for eBay then consider buying general movie tickets at the start of the month or a few coupons when your pay comes in to use throughout the month. By doing this, you minimize the instances where you use your savings for impulse purchases.
Remember, the more consistently you can save, the better you score can be.
Get Your Payments Under Wraps
Making your payments on time is great, but only if it is improving your financial situation. If you are making multiple minimum payments across a range of credit providers then it’s likely that you aren’t improving your financial situation. Consider items like a debt consolidation loan. These loans work by transferring all of your existing store and credit card debt into one loan with one management payment schedule.
In addition to being a great way to actively reduce your debt, it is also a great motivator to continue as you can see your debt in one large figure reduce each time that you make a payment and not increase again the next month when your statements are issued.
Just because you have been denied credit in the past doesn’t mean that you can’t change your situation and be approved next time. Consider the tips above and get your finances in order ready for your next credit application!