Unless you’ve got millions in the bank, and you can lounge by the pool all day, counting out your withdrawals on a sunbed, handling money isn’t often something people enjoy. What’s worse is managing the money you owe, and the absolute worst of all is sorting out your ability to borrow money, which you will than owe in the future. Unfortunately, keeping our credit score in the back of our minds can only lead to bad results. Swoosh has compiled the common causes for a poor credit score, and some nifty advice on how you can help it improve.

Excessive existing debt

Naturally, any debt you already have will be present on your credit report and factored into the consideration of your loan application by lenders. Put plainly, the more existing debt you have to your name, the less likely you are to have your loan application accepted. Financial institutions need to trust that the money leaving their walls will be returned (with due interest) on a given schedule, in order for them to confidently lend out more money to other applicants. The most common of these debts are credit cards, which (especially if you own multiple) can often balloon into large amounts owed.

You can fix this by cutting out the financial tumours in your life. Be gone with those credit cards and rehabilitate your life with some sacrifices in the short term in order to build up your savings. Once they are enough, use them to write off those debts and find your credit score boosted.

Paying bills late

Bills can stack up. Rent, phone, electricity, gas, water – how we don’t forget to pay them more often than we do is anyone’s guess. Only if a bill is over $150 and not paid within 60 days, it will be presented on your credit report as default, and serve as an indicator to lenders that you are unfit to meet your financial commitments. Often when you are late paying a bill, your service provider will prefer to receive their payment quickly rather than seeing your credit score lowering, and send plenty of reminders. Still, if you continue to fail paying the bill – especially on repeated occasions – than you are facing falling into ill-favour with your prospective lenders.

Ensure you honour your financial obligations by organising your income streams to accommodate necessary outgoings before you allocate them to anything else.

Submitting numerous credit applications

Applying for anything as big as a home loan, to something as small as a personal loan, will always create a new record against your credit score. If a lender sees that you are submitting applications to a variety of other financial institutions, it may give them cause to believe you are in serious financial duress, and will be unlikely to make your obliged repayments. Whether this is the case or not, it will be an automatic mark against your name when a lender is considering handing you any of their money.

The solution to this one is simple. Abandoned the ‘finger in every pot’ philosophy, and do your research before submitting an application. Study all of your prospective lenders and financial institutions, and only proceed with a loan application if you are both likely to be accepted, and if it is within your means to accommodate the obligations that come with it. If you already have plenty of rejected applications on your report, it is a good practice to live as frugally as possible, and try the old fashion way to build your financial independence up through saving for a few years, until you apply again. Even more sacrifices, but it won’t make your score worse.

Improve credit rating with a personal loan

Fixed your credit score as much as you can? Swoosh offers simple personal loans of amounts between $2100 – $5000 with fixed term scheduled repayments that are easy to manage. Even if you have bolstered your credit score enough for your application to be accepted, you might not have enough savings to pay for those necessary house repairs, medical costs, and so on. A personal loan can provide you with the funds, and also an opportunity to show future lenders that you are capable of meeting financial commitments. Contact Swoosh today to take out your personal loan.