To improve your credit history, it is easiest to apply for a credit-builder loan. Using the referral service, you will not only be able to borrow a small amount online, but also restore your financial reputation. It will take only a few weeks or months to correct your credit score.
There can several major causes of bad credit:
The last two categories of clients will be blacklisted. The path to re-lending will be closed for such citizens. Clients who delay payment due to financial difficulties or forgetfulness can easily take out a credit-builder loan.
If you delay payment for several days but have agreed on a loan extension option with the lender, the credit history will remain the same. The fact is that MFIs are loyal to citizens who have temporary difficulties and give them a second chance to pay debt. However, there will be no third chance – if you deceived the lender, you will be charged high fines.
To achieve the desired result for correcting your credit history online, we recommend that you follow some rules:
Before starting the procedure, it is recommended to contact the credit bureau and a copy of your credit report. It is recommended to repeat the same procedure six months later in order to track the changes.
If you have a low credit score, there is no point in contacting a bank – large financial institutions are faced with an oversupply of customers, therefore, if you have a poor credit score, you are denied a loan immediately. MFIs treat applicants differently:
All records on the timely debt closure are entered into the credit bureau database, which increases the borrower’s rating among financial institutions. In 6-12 months, the credit score will improve.
Instead of applying via different websites, you can use a referral service which has an extensive network of reliable lenders that approve clients with a bad credit history.
The procedure for obtaining credit builder loans can be divided into several cycles:
Next, you need to use the services of MFIs 3-4 more times. The repeat applicants will be approved much faster since all user data will already be saved in the system.
Credit history is a clear indicator of the level of borrower’s financial discipline. The higher the score, the more trust the MFIs and banks have, which increases the chances of getting a large loan.