Why You Must Improve Personal Credit Score after Getting a Bad Credit Mobile Phone
When you find yourself looking for a bad credit mobile phone, it means that the personal finances are at crossroads. However, this touch on very many areas of personal life than people can probably imagine. It is, therefore, critical to start working on improving personal credit score. Here are the main reasons for improving your credit score.
Good credit score will help you to qualify for better phone contracts
The nature of phone contracts you get in the UK is dependent on personal credit score. People with poor credit score still get contracts; they come at a higher cost compared to those with a better score. Besides, good credit score allows you to enjoy better deals and latest smartphones in the market. Do not simply wait to see the next flagship smartphone from Apple, Samsung, or Sony, only to get turned down because of poor credit; start acting right away.
Higher credit score is the key factor for accessing credit from banks
Though you have managed to get a bad credit mobile phone, it is not yet time; you are still in the woods! All other institutions will be looking at the credit score to determine whether to work with you. Of particular interest at this point are the banks.
Because of the poor credit, no bank will agree to advance credit to you. This means it will be difficult to get an overdraft, loan for business expansion, or credit for an emergency. You must work extra hard to improve the credit score to avoid seeking credit from other high-interest channels such as logbook loan and payday loan dealers.
It is the first step in marching towards financial freedom
The dream that every person holds to dearly is reaching financial freedom. This is a special point when you have ample resources to cater for all expenses, the emergency fund is large enough to pay for anything, and savings are growing. Many people revere financial freedom because there are more streams of revenue and their future and those of siblings are catered for. The starting point to achieve financial freedom is improving personal credit score.
How to raise your credit score
Having appreciated the crucial role that good credit score plays in enhancing personal lifestyle, it is good to turn to the best strategies for improving it.
- Correct errors on personal credit report: Many are the times when personal credit reports contain numerous errors. These errors mainly arise from the fact that all information is sought from third parties that can often get late or fail to submit all clients’ details.
- Draw a good credit repayment strategy: One of the greatest factors pulling down personal credit score is existing loans. You must adopt a good repayment strategy such as the snowball method that involves clearing the small loans first to gain momentum when paying the bigger ones.
- Consider borrowing from a personal account: If the banks are unwilling to lend you money, it is advisable to consider borrowing from a personal account and building a good history.
- Keep your credit card lines open: Often, the main cause of poor credit score for many people is credit cards. Though they might have high-interest rates, it is advisable to keep the lines open because they have some good history that is necessary to keep the score high.