-->

Thursday 1 May 2014

Using Buy Now Pay Later Catalogs to Improve Credit Score

Millionaires Giving Money is a blog which highlights all the financial help that’s available from millionaires, billionaires and philanthropists. This blog also gives practical advice to help readers who want to improve their financial circumstances. One of the best ways to make a positive financial change is by improving your credit score. I receive a lot of emails from my readers asking about ways to improve fledgling credit scores. One way to improve and build credit is by showing financial institutions and credit reference agencies that you are worthy of credit.



Unfortunately most financial institutions are unwilling to lend money to people with bad credit. There are a number of ways around this. One option that many people use to improve their credit is Buy Now Pay Later catalogs. These catalogs offer small amounts of credit and allow the shopper to spread the cost of their shopping. These small credit accounts are great if you want to avoid payday loans. In comparison a payday loan will charge an APR in excess of 1000% whereas Buy Now Pay Later catalogs offer APR under 50%. I have outlined the exact steps you should take if you want to improve your credit score using this method. This process has helped me to improve my score dramatically.

1: Get a Free Credit Report


The first step is to get a free credit report from a credit reference agency. You can get a credit report from Experian, Equifax and Credit Online. These credit reference agencies are approved my USA.Gov which means they are reputable with up to date information. The purpose of getting a credit report is to find out what your score is so you can determine whether the BNPL catalog exercise was a success. Getting a free credit report will also help you to repair the niggling points that are depressing your credit score.

2: Fix All the Mistakes on Your Credit File


Before you try the Buy Now Pay Later catalog experiment you need to fix all the mistakes on your credit file. Make sure all the information is up to date and correct. If there are any anomalies ask the credit institute to fix the mistakes and reflect the actions with the credit reference agency. Disassociate yourselves from other people in your household who have bad credit. Pay off all the small balances and try to consolidate all your debt.

3: Find Buy Now Pay Later Catalog Companies


Now find one Buy Now Pay Later catalog companies. Do not apply to too many BNPL credit accounts as this has a negative effect on your credit score. Instead apply to BNPL accounts which have a high approval rate. BNPL catalog companies such as Fingerhut, Sears and Midnight Velvet all have high approval ratings for people with bad credit. Do not concern yourself with the low credit facility. Your purpose is to build credit.

4: Buy Items That You Need


If you use payday loans to buy items which break down you need to remove this habit. Payday loans charge excessive interest. They might be the perfect financial tool when you’re in a tight spot however these loans will make you poorer and do nothing for your credit score. When you need to buy something turn to your Buy Now Pay Later catalog to find the item. Pay for the item using your credit account. Spread the payments. Pay off all the payments on time without fail to build your credit score.

5: Make Sure You Can Afford the Payment


Another point to consider when you purchase something using BNPL is affordability. If you’re unable to afford the weekly or monthly payments you’re stretching yourself and you pose the risk of further deteriorating your credit score. Only buy items you can afford and do not take on excessive debt. Remember the purpose is to build credit not fuel retail therapy.

6: Pay More than the Minimum Payment


When you make payments you should always pay more than the minimum payment. Suppose you need to pay $50 per month for 6 months interest inclusive. You should aim to pay $55 every month. This will show the credit reference agency that you have urgency to pay off the amount quicker. This action will result in a rise in your credit score.

7: Make Early Payments


Know what your payments will be. You should have a schedule of payment along with due dates. What you need to do is make the payments two weeks in advance. When credit institutes and credit reference agencies notice quick payments reliability ratings increase. Try to put a reminder in your diary or outlook to make the payment. You could automate the whole process by setting up automatic payments from your bank account to pay 2 weeks in advance where the payment is more than the minimum required payment.

8: Call Your BNPL Credit Account


Once you’ve got a track record of prompt payment and reliability you should call your Buy Now Pay Later catalog company. Ask for a reduction in APR and an increase in credit limit. When credit reference agencies notice lower APR on the account along with higher limits your creditworthiness increases. This also increases your credit score.

9: Keep a Credit in the Account


Try to keep a credit on your account. I keep a $5 credit on my account just in case I want to buy something. Keeping a credit also shows the BNPL catalog company that you are committed to keeping the account active. This information is passed onto the credit reference agency which reflects the action by giving you a higher credit score.

10: Apply for More Credit Accounts


Once you’ve established a robust credit history with one of the Buy Now Pay Later Credit Company you can start applying for more BNPL credit catalogs. Do not apply for more than one at a time and have no more than 3 accounts. Use the other accounts in the same manner. Always consider affordability when you make a purchase.

Once you’ve established 3 accounts with robust credit history you should recheck your credit again. You should notice a significant rise in your credit score. Once you notice the rise you should apply for credit cards which have special offers and lower APR compared to BNPL catalogs. For every credit card you open you should close a BNPL account because you no longer need it. Remember having too many credit accounts can have a detrimental effect on your credit score. 

2 comments :

  1. Good Day !!!!!

    I am Hwa Jurong, a Reputable, Legitimate & an accredited money
    Lender. I loan money out to individuals in need of financial assistance.
    Do you have a bad credit or are you in need of money to pay bills?
    i want to use this medium to inform you that i render reliable beneficiary
    assistance as I'll be glad to offer you a loan at 2% interest rate to
    reliable individuals.

    Services Rendered include:
    *Refinance
    *Home Improvement
    *Inventor Loans
    *Auto Loans
    *Debt Consolidation
    *Horse Loans
    *Line of Credit
    *Second Mortgage
    *Business Loans
    *Personal Loans
    *International Loans.
    Please write back if interested.
    Upon Response, you'll be mailed a Loan application form to fill. (No social
    security and no credit check, 100% Guaranteed!) I Look forward permitting me to
    be of service to you. You can contact me via e-mail: hwa_jurong@yahoo.com.sg
    Yours Sincerely,

    Hwa Jurong(MD).


    ReplyDelete
  2. HOW I GOT MY LOAN FROM DR KELLY WILLIAMS LOAN FINANCE

    My Brothers and Sister all over the world, I am Mrs.Irene Query Wheat from philippines ;i was in need of loan some months ago. i needed a loan to open my restaurant and bar, when one of my long time business partner introduce me to this good and trustful loan lender DR KELLY WILLIAMS that help me out with a loan, and is interest rate is very low , thank God today. I am now a successful business Woman, and I became useful. In the life of others, I now hold a restaurant and bar. And about 30 workers, thank GOD for my life I am leaving well today a happy father with three kids, thanks to you DR KELLY WILLIAMS Now I can take care of my lovely family, i can now pay my bill. I am now the bread winner of my family. If you are look for a trustful and reliable loan leader. You can Email him via,mail (financialgoodnews22@hotmail.com) Please tell him Mrs Irene Query Wheat from philippines introduce you to him. THANKS


    LOAN APPLICATION FORM:
    First Name:
    Last Name:
    Next Of Kin:
    Date Of Birth:
    Marital Status:
    Address:
    Sex:
    Phone No:
    City:
    Zip Code:
    State:
    Country:
    Nationality:
    Weekly income:
    Occupation:
    Monthly Income:
    Amount Needed:
    Duration:
    Date of loan needed:
    Purpose of the loan:
    E-mail address:

    Regards.
    Managements
    DR KELLY WILLIAMS Lenders Finance Limited

    Contact Us At :financialgoodnews22@hotmail.com

    ReplyDelete

POPULAR POSTS OF LAST 30 DAYS ON MILLIONAIRES GIVING MONEY

Where Can I Get Help From the Government?

Where Can I Get a Free Car for My Family?

Featured Posts of Millionaires Giving Money


I Need 5,000 Dollars Right NOW! - Ideas to Make 5,000 Dollars Quickly

I Need 10,000 Dollars Right NOW! - Ideas to Make 10,000 Dollars Quickly


Welcome to the Millionaires Giving Money Blog. Learn how to Make Money, Save Money and Investment Money. Find out how to ask Millionaires and Billionaires for financial assistance.