Can your credit history being corrected with new loans?

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What is a credit history, how is it formed

This is the aggregate information concerning all the actions of a person with loans and borrowings:

• how many loans have been issued in recent years;

• what is the credit load at the moment;

• Do you allow delays in payments;

• how often do you apply for loans and credits.

CH is formed on the basis of all loans, regardless of their size and terms, be it a small payday loan or a mortgage. Banks and other credit and financial organizations always look at the credit history, because if it is spoiled, a person is threatened with continuous refusals when trying to take money.

There is only one way to fix CH

The most important thing for credit history is the absence of regular delinquencies, especially if they are repeated for a long time. Hence the logical conclusion - CH is corrected by using new loans, which the borrower must close in a timely manner.

But how to do this in conditions when everyone refuses? There are opportunities, since not everyone refuses, for example, you can apply for a loan online - a small short-term loan.

Microcredit as a way to improve your credit history

Many borrowers see microloans as a way to build a positive CH. This really works because MFIs also submit data to credit bureaus.

Microcredit companies look at CH, but scoring takes into account many factors, so even with a bad history, a client can get approval and take microcredit. The amount is small, it is not difficult to repay such a loan. Close the loan on time, after which the relevant information appears in the database.

So, gradually, demonstrating good discipline, you can correct the CH.

Online microcredit

Microcredit often becomes a life-saving tool. This is a special type of loan that can be obtained via the Internet in just a few minutes. Fast online loans are distinguished by small amounts that allow you to solve urgent current issues - money before a paycheck, buying the right goods, paying for services, etc. The microloan is taken for up to 30 days. Services offer different ways of transferring funds, most often a loan is issued to a card on the same day.

By periodically issuing new loans and closing them in a timely manner, a person will be able to create a positive history of relationships with financial institutions and improve his CH.