When you accumulate debt and begin using the services of debt consultants in Victoria, it can feel discouraging to review the damage caused by your outstanding balances. Your credit score can take a hit due to late payments and difficulty repaying your debt. Fortunately, there are ways to recover and boost your credit score to 800 while working with 4 Pillars.
Reduce Your Credit Use
Even after you start repaying your debt, you can still have a low credit score if you use your credit cards too much. A 4 Pillars debt consultant in Victoria will recommend reducing your credit usage to 30 percent of your credit limit. These consultants will tell you that keeping your balances low is the secret to boosting your score as you pay your balances down with the help of 4 Pillars.
Avoid Closing Credit Cards
One of the primary mistakes many people make when repaying debt is to close credit cards with a long history. When you cancel a credit card you’ve used for 20 years, it reduces the length of your borrowing history. You can still cut up the credit card to avoid using it without closing the account.
Avoid Applying for More Credit
When you’ve already accumulated a lot of debt you’re attempting to repay with the help of 4 Pillars in Victoria, the last thing you want to do is get another credit card. Every time you apply for a credit card, it can ding your credit score due to a credit inquiry. You need to be patient and look forward to your credit score increasing by paying off the debts you already owe. Every time you make a payment on time, you’ll increase your score.