1. Sort existing commitments on time

Even if you have previously missed payments or have accumulated debt, sort new commitments on time. If previous payment habits show that you don’t fulfill your commitments in a timely manner, a better impression will be created if you change these habits.
To avoid forgetting to pay your bills on time, many banks offer automatic invoicing. That way all your bills will be paid on time and your credit history will be safe.

2. Pay overdue commitments

It is very important to pay already existing overdue commitments. It is the first step on the path to changes. If your credit history shows debt and missed payments, there is no point of hoping for a loan.

3. Check your credit history information

There is a possibility that false information about you is accidentally provided to one of the credit bureaus by the lending company. Another possibility – the error has occurred in the credit bureau. Check your credit history and make sure that all the information provided there is accurate.

4. Borrow and quickly pay a loan back

Such action is one of the fastest ways to get a positive record in your credit history. If your credit history is damaged, you will have to apply for an expensive loan with unfavorable rates. Deliver all payments on time and repay the loan before its term, if possible. Although this method is not financially beneficial, it will show your financial discipline and increase credit history.

5.  Avoid multiple loan applications in a short period of time

The ability to put down a certain amount of your income for savings every month will create a better perception of you to the lender, even if your credit history is not very good.

6. Avoid multiple loan applications in a short period of time

Every loan application can be seen in your credit report. If you have made several loan applications in a short period of time, it only makes your credit history worse. Moreover, it shows the lender that you are desperately looking for a loan. If you get rejected, don’t apply with a different lender right away, but wait a while until applying again (number of credit history requests are visible for the last 12 months).

7. Make sure there are bills on your name

If all costs are covered jointly in your family, yet the contracts are not signed under your name, these timely paid bills don’t affect your credit history and score (for example, utilities, television, Wi-Fi). Make sure that at least some of the contracts are under your name.

8. Reduce your existing debt

If you have decided to apply for a large loan, for example, a mortgage, firstly make sure that your existing debt doesn’t extend 40% of your monthly income. If you have borrowed in the short term, repay your existing loans before making a decision to apply for a new one. If the lender will suspect that you spend more on loan payments than you can afford, the lender won’t be interested in issuing a loan. Start by resolving your existing commitments!

9. Make sure you have regular and official income

Regular and official income makes your credit history attractive. If you have just started a new position at a job and are still in the trial period, don’t rush – apply for a loan when you have spent at least six months there. That way the lender will know that the risk of issuing a loan to you is smaller and you will be able to pay the loan back. Moreover, the lender only takes into account official income for which taxes are paid. Therefore, if a part of your salary is paid on hand, this money will not be taken into account when evaluating your application.