Undoubtedly, the outbreak of Covid 19 has left a very bad impact on our daily life. Besides, long-drawn lockdowns and increasing unemployment have given birth to the financial crisis. The world has stopped, and we all are confined to our homes.
While economic soundness is the primary need of our life in such a scenario, it has completely dropped down. Therefore, due to the unbearable financial crisis day by day, the cases of suicides are rising. The one and only reason for such mishaps is borrowing money and being unable to repay.
On the other hand, there is no other option instead of borrowing online loans in Ireland to improve the financial situation. However, a borrower must remember that he should borrow only that amount which he can repay with easy installments. Generally, most borrowers perform the same mistake of applying for a huge loan amount without considering their repayment ability.
To failure of repayment, the borrower faces lots of problems such as getting the title of the defaulter, ruins credit score, drops down the repayment performance, etc. Now, the bad credit score will impact highly on a borrower’s profile and limits his future borrowing ability. Here we will talk about some simplified ways to boost credit scores even during a pandemic.
Before we start giving you tips, let us know the possible flaws that almost every borrower performs during and after borrowing money.
List of mistakes to avoid which a ruin credit score
1. Unable to analyse exact loan amount
We know how it feels when you suddenly lose your job. It will make you feel helpless and closes all the possible ways. Being a family person, you can hardly avoid all the responsibilities, and even after having no source of income, you need to opt for a loan. It is not difficult to choose a higher amount of loan in such a condition while filling up the application.
But it can become a cause of lowering down your credit score. Being unconscious when you apply for a high amount of loan then you need to remember that it is borrowed money. Likewise, you have to repay it. Gradually, failing to which your credit score will come down.
2. Missing repayment constantly
When you apply for a loan, you have to make sure that there is enough capability of paying the entire outstanding amount. On the other hand, unable to ensuring which you may fail to repay the money. Repeatedly failing repayment will ruin the credit history as well as the credit score.
It has also been observed that many borrowers, even after repayment, are still unable to pay the entire borrowed amount. This is because the failure of to remember the date of repayment. Make it clear. If you repay the installments after the due date, then it has no value.
3. Lack of knowledge
Very few borrowers know a suitable credit score because a borrower must have to become eligible for a loan. Generally, it depends upon lenders to lenders. While some lenders try to keeps it within the line of 750-800.
Many others may prefer 650-700 as a good credit score. Therefore, if you failed to secure that much score, then you are in a risk zone. Whenever you apply for a loan, it will immediately come under rejection. So, before applying for personal loans from Ireland, even with a bad credit loan, make sure you have gathered enough credit points.
6 simple tips to enhance the credit score despite Covid 19
1. Let take part in the election
Perhaps you are thinking about what the relationship between voting and enhancing credit score is? Yes, these two have an intertwined connection. One depends upon the other. According to a recent survey, many people who have voted for the first time and never borrowed any loan get a good rise in credit score.
Even during Covid 19 election has not stopped as it is an important legal activity. Thus, taking part in the election credit score gets a boost with a maximum of 50% of its previous score. So, if you have lost the recent chance, do not be upset as it will again happen. At that time do take part.
2. Be wise when choosing the loan amount
It is quite true that due to Covid our medical expenses have got a huge rise. That is why people who do not have any option without borrowing due to medical costs apply for a huge loan. Now, this is something completely imprudent decision.
Although you have medical emergencies, try to opt for a health insurance facility instead of borrowing a huge loan amount. On the other hand, if you have no other option without applying for a loan, try to borrow only that amount necessary. Without analyzing the perfect required amount, do not just start applying because it is the most crucial stage.
3. Do not miss out eve a single payment
When you have adequate money in your hands, why wait for the due date to come? Yes, most of the people used to wait for the due date to make the payment. Even if you pay the entire outstanding amount within the due date, it will no longer create a problem in your credit profile.
Moreover, it will help to improve the credit score steadily. On the other hand, being incapable of repayment, one may drop a single payment, and if he thinks that it will not affect, then it is completely wrong. Even if you fail to pay a single repayment, it will badly impact your credit score.
4. Do not skip your rents
Borrowers may think that credit score has no relation to rental payments. But actually, it has. Skipping rental payments months after months will create a bad impact on your credit score. If you lost the job due to lockdown, then you must have no source of income.
In such a condition, borrowing a loan is the one and only option. While you apply for an unemployed loan, it will be considered as bad credit. However, many lenders accepted such unemployed loans only if the borrower possesses a good credit score.
In that case, one of the reasons for a bad credit score is skipping rents. Now, this is not something that took place in one day. Tenants who have the habit of skipping rents month on month only they suffer for bad credit score.
5. Collect information from the authentic source
Most people are lack information. This is the reason for the bad credit score majorly. Many fake websites share rumors about different topics to get more viewers.
During the pandemic, the number of such fake websites has turned into a good number. Many people take information from those websites and believe it is the authentic one. It has been observed that many of those websites often spread rumors about loan eligibility.
Those fraud websites may spread news like ‘Irish Government has reduced the credit score and low credit score holder surely gets a good amount of loan’. Such types of statements are completely wrong. Therefore, whenever you need to gather the latest information, visit the official website of the Ireland government.
6. Change your credit card
You may have often heard that the inability to make a high credit score takes place due to using a credit card. Now, this is something quite true. If you are using a business credit card instead of a reward point, you will surely miss the opportunity. For this reason, use the right credit card, which will improve your credit score. We recommend using credit builder cards which help in enhancing your credit score at your every purchase. Almost every credit card company used to offer such credit building cards. You can also upgrade the existing one with a new credit building card.