Strategies For Improving A Consumer’s Credit Rating

In the Virgin Islands, consumers must manage their credit rating proactively. While they can check it frequently with their preferred app, it is beneficial to discuss their credit rating with their financial advisor. A financial planner could help the consumer improve their credit rating and achieve all their financial goals.

Evaluating the Credit History

The first step for improving a consumer’s credit rating is to evaluate the credit history. The consumer’s credit history is reviewed each time that they attempt to open a new line of credit. The listings on the reports could prevent the consumer from buying a home or even obtaining a low-interest credit card.

Does the Consumer Have Enough Credit?

Consumers who didn’t open many lines of credit initially could be told that they don’t have enough credit. The easiest ways to establish credit is to open a credit card account. The financial advisor presents the consumer with several options to achieve this goal. The credit card shouldn’t require annual fees, a high interest rate, or a minimum yearly purchase. The credit card program chosen for the consumer is based on their income and ability to repay the debt.

Credit Rebuilder Loans

Consumers who have paid off debts recently or completed bankruptcy need to rebuild their credit. A viable solution for achieving this objective is to take out a credit rebuilder loan. Banks and credit unions provide options that require small payments and won’t present a financial hardship. The consumer can set up automatic drafts for the small payments from their checking or savings account immediately.

Reducing the Total Value of Debt

Another solution for improving the credit rating is to reduce the total value of the debts. Paying extra each month can reduce the total balance of several debts quickly. It can also help the consumer stay ahead on their payments.

In the Virgin Islands, credit ratings could entitle a consumer to first-time buyer programs or an option to buy an automobile without a down payment. Their credit rating defines whether or not the consumer has the ability to manage their debts properly. Consumers who want to learn more about strategies for improving their credit rating contact Kirk Chewning today.