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No matter how financially responsible you try to be, a job loss, medical emergency, or other disaster can ruin your credit history. A poor credit rating can make it difficult to qualify for a personal loan, buy a car, or rent an apartment, and some employers even check your score as part of the hiring process. Rebuilding your credit score may seem like a difficult project, but with the tips below, you can start to boost your rating. 

3 Tips for Rebuilding Your Credit

1. Pay Your Bills on Time

Your payment history is the single most important aspect of your credit rating, accounting for up to 35% of your score. To show lenders that you’re capable of managing your finances responsibly, pay all of your credit cards and other loans on time every month. If you have a habit of forgetting, setting up automatic payments can help you avoid expensive late fees, while building up your score.

2. Check Your Credit Report

personal loanApproximately 20% of Americans have an error on their report serious enough to affect their scores. Get a copy of your credit report, look it over closely, and report any errors to the reporting bureau immediately. You might find that your credit score is being dragged down by someone else’s debts or creditors who failed to note that your account has been paid off.

3. Pay Down Debt

Only using a percentage of your available credit shows lenders that you’re not digging yourself deeper into debt. In addition, paying more than the minimum on your credit cards, personal loans, and other accounts can bump your score up in a matter of months.


 

Obtaining an installment loan is another smart way to boost your credit, and the team at Master Finance in San Marcos, TX, is here to help. This type of loan has a set term and a set payment, so you can keep track of your monthly payments and show lenders you have diversity in your account types. In addition to personal loans, Master Finance also provides tax preparation services to residents throughout Hays County. To learn more about their services and apply for a personal loan, visit their website or call (512) 392-6102 to speak to a knowledgeable member of the team today.

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