Financial organizations are required to transmit data on overdue payments on loans to credit bureaus. The more often the borrower makes delinquencies, the faster his rating of the borrower deteriorates, because of which when applying for a new loan, a person faces refusals from banking institutions. If the borrower foolishly messed up their credit history, they should not be very upset, because if you want to fix it, you can fix it.
Information from your credit history
The credit file contains a lot of different information. Particularly interesting for lenders are items where debts on existing loans, the number of old loans and the number of still-existing loans, the amount of amounts paid for each loan agreement, and so on are listed. This history shows all the information, not only for current loans but also for old loans that were issued by a person over the past 10 years.
Before you start correcting your credit history, it is very important to carefully study your personal file. To do this, you need to order a statement. This procedure will be free of charge if the person has not used this service in the past year. If a person has already requested a credit history report in the past 12 months, they will be able to get it again.
The correction using the virtual microloans
Each new loan, paid without delays and other unpleasant moments, leads to an improvement in the credit history, and therefore the registration of micro-loans is an ideal option. Such loans are issued for short terms and small amounts, which allows the borrower to fulfill their loan obligations in a short time and get a positive record in the credit history.
The number of such transactions will depend on how badly the credit history was damaged, as well as what kind of credit a person plans to get from the bank after correcting the credit history. Each subsequent loan is better to issue a slightly larger amount and at the same time try to adhere to the exact terms of payment of debt on a micro-loan. You should not try to return it before the deadline, because in this case, the record of early repayment must appear in the credit history, and financial organizations do not like such borrowers very much.
Virtual loans are issued quickly and easily today. It is better to conclude a deal with one organization several times in a row, in this way the borrower will receive more favorable terms for each subsequent microloan and show financial organizations their loyalty to the lender.
Correcting your history with a credit card
If you choose this option, you will need to find a couple of financial organizations to issue a bank card with the credit limit enabled. The size of this limit at the time of opening will not be so important. The borrower will need to actively use the card for a month, and at the end of it, deposit the used amounts to the credit accounts. It is important to choose such methods of use, in which the bank does not take interest: payment via terminals, credit card deposits to other cards, online purchases, etc.data on the use of credit cards also fall into the credit history.