If you are struggling with credit woes and want to find a quick fix for your credit scores, then understand this – there is no quick fix. Getting your credit scores in order requires both discipline and educating yourself about the options available.
However, it doesn’t have to be a stressful and worrisome process, and of course, MoneyTap can help you.
Ways in Which MoneyTap Can Help You Raise Your Credit Ratings
Pay Your Bills on Time
MoneyTap will give you a friendly reminder as you approach your billing due date. That way, you won’t forget and can make at least minimum payments. This really helps because being just a few days late, on your balance payments, can cause damage to your credit score. Of course, your credit ratings will be really hurt if you are a perpetual defaulter.
Convert to EMIs
If you are having trouble making your payments because of the high annual interest rates on credit cards, convert your credit card to EMIs using MoneyTap. You can choose your repayment schedule between 3 and 36 months and make affordable EMI payments every month till you are out of debt. The advantage is that personal loan interest rates are nearly half of credit card annual interest rates. Several credit card companies do allow you to convert your credit card balance due to EMIs but they charge your credit card interest rates. Be careful before you convert to EMIs to make sure you are paying lower interest rates than your existing card.
Keep Your Balance Low on All Debt Instruments
Unlike most other personal loan instruments in the market, MoneyTap allows you to borrow as low as Rs. 3000 and as high as your eligible credit limit. So, borrow only what little you need and pay interest on it alone. Sitting on high outstanding debt has a large negative impact on your credit scores.
Open New Lines of Credit Responsibly
Opening new accounts responsibly to open new lines of credit can actually improve your score. If you do not have high outstanding debt but have a low credit score, consider using your MoneyTap card for purchases and paying them off on time to improve your overall score. Alternatively, if you prefer avoiding a credit card altogether, transfer as little as Rs. 3000 to your account and pay it off by the due date.
Apply For or Open New Credit Accounts Only if You Really Need it
With MoneyTap you are given access to a credit limit, that you can use like your own pool of money. Given the flexibility and convenience of it, it is important that you think deeply about whether you need to open additional credit accounts at all. Having many open accounts that you are not using will only accrue charges while giving you no other major edge if you are working to improve your credit score.
In short, if you want to improve your credit score, focus first on reducing your high outstanding amounts and then on maintaining a healthy credit history by making timely payments and managing your credit accounts in a disciplined manner. You might not be able to fix your credit immediately, but with patience and consistency and a little help from MoneyTap, you will succeed in the end.