Follow These Credit Score Tips And Borrow With Peace

By Author: Laxmi Keshav
Total Articles: 61
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You are unable to borrow despite great efforts. You can blame it on your credit score. You see, when you apply for a loan, financial institutions and lending companies look at your credit score for guidance. People with low credit scores are more likely to be rejected for a loan or at best be given a small amount for a loan, with a high interest rate and a shorter time frame to pay the loan.

In contrast, people with high credit scores are given higher amounts of money for a loan, lower interest rates and longer time frame to pay the loan. A good credit score signifies lower risk and a perception of better ability to repay.

Improve your credit score with these effective methods -

1. Pay on time

Your ability to clear your dues has a great bearing on your credit score. Timely payment is crucial. It is important that you keep a payment schedule if you really want to raise your credit score a notch.

Always track your bills and statments like credit card statments. This way, you will not only incur additional charges in terms interests, you will also build for yourself a good credit history.

2. ...
... Control your spends

Another factor that affects credit scores is your credit card. Credit cards with low available limits mean lower credit score. This is because a maxed out credit card reflects a spender who cannot handle finances. This kind of person is a risky candidate for a loan.

3. Limit Your Borrowing Sources

It is a common practice to submit loan requests to mutiple lenders simultaneously. Never do that. Although banks do not actually check with each other, they do have their own ways of finding out if you have also borrowed money from other institutions. If this is the case, your credit score will take a nosedive.

This is because people who borrows from a lot of companies are seen as too desperate for money or is too needful of it. Some see this as a dubious way of acquiring money. So if you are afraid of getting rejected and you just want to make sure that you will get a loan, try waiting for one response before starting an application in another. That way, your credit score will not suffer.

4. Try to clear your debts

You may find willing lenders because you are a good payerAlthough most companies would want to lend you the money because you are a good payer, too many oustanding debts will create a bad impression.You may be paying your debts but you have a lot that you are not finished paying yet. This is also not good in your credit history.