Want a Better Loan? Fix Your Credit First!
A strong credit score is your ticket to lower interest rates, higher loan amounts, and better approval odds. Whether you need a business loan, mortgage, or personal loan, improving your credit score could save you thousands.
At Northern SME Loan, we help borrowers secure financing—but we also want you to get the best possible terms. Follow these 8 expert-backed strategies to boost your credit score before applying.
Why Your Credit Score Matters for Loans
✅ Higher scores = Lower rates (Save 1-5% on interest!)
✅ Easier approvals (Lenders trust borrowers with good credit)
✅ More negotiating power (Better terms & higher limits)
Credit Score Ranges:
- Excellent (720+) → Best rates
- Good (680-719) → Competitive offers
- Fair (640-679) → Higher interest
- Poor (<640) → Limited options
8 Steps to Improve Your Credit Score Fast
1. Check Your Credit Report for Errors
🔹 Get reports from CTOS (Credit Tip-Off Service)
🔹 Dispute inaccuracies (late payments, wrong balances)
2. Pay Bills On Time (The #1 Factor!)
📅 Set up autopayments or calendar reminders
💡 Even 1 late payment can hurt your score
3. Lower Your Credit Utilization (Ideal: Under 30%)
💰 Pay down credit card balances first
🔄 Request a credit limit increase (without spending more)
4. Avoid New Credit Applications
🚫 Each hard inquiry drops your score 5-10 points
⏳ Space out loan applications by 6+ months
5. Keep Old Accounts Open
📅 Longer credit history = Better score
💳 Use old cards occasionally to keep them active
6. Mix Different Credit Types
✔ Installment loans (e.g., car loans) + revolving credit (e.g., cards)
⚠ Only borrow what you can repay!
7. Consider a Secured Credit Card
💳 Best for: Thin credit files or rebuilding credit
🔒 Requires a cash deposit as collateral
8. Pay Off Collections & Settle Debts
⚖ Negotiate pay-for-delete agreements
📉 Even paid collections hurt—try to remove them
How Long Does It Take to Improve Credit?
| Action | Time to See Impact |
|---|---|
| Paying down balances | 1-2 billing cycles |
| Removing errors | 30-60 days |
| Building positive history | 6+ months |
💡 Pro Tip: Start 3-6 months before applying for a loan!
Northern SME Loan: Get Approved with Your Improved Credit
Once your score improves, Northern SME Loan offers:
✔ Low-interest business loans
✔ Fast approvals (24-48 hours)
✔ Flexible terms (1-7 years)