Getting approval for any type
of loan depends on your credit rating. If you have average credit rating, you
will find it almost impossible to get approved. It’s possible to get good
rating or even improve you credit rating. Most companies almost use same rating
system and if you are able to know more about it you should be able to have
better credit score.
Your age is the first factor
which it’s almost impossible to do anything about. Yes it’s possible to lie,
but don’t because it will make things more difficult for you in future if the
creditor get to know. If you are between 24 to 64 years of age you will get one
point. Any age bellow or above that will score you zero point.
If you are married you have
chance of adding extra point to your score. If not, you still score zero as
most creditors see you as a higher risk. Also if you have no dependant you will
score zero. But if you have between one to three you will add to your points.
Here is how it works – if you have no dependant creditors believe you can skip
town and not pay off your credit.
Creditors will also want to
know more about your root. They will want to know where you live. Owning a home
with a big fat mortgage or even without mortgage will give you more points. How
long you stay in your present or previous residence also adds more points to
your score. If you’ve move so often you will score zero point. However, if
you’ve stayed up to 5 years before moving, you will surely get more point. It shows you are a good risk to them.
Other factors that will add
to your point are your years on job (the longer the better), kind of job, your
monthly income, present debt status, previous credit history and your saving or
checking account.
You credit
score is usually rate between 350 and 850. The lower your score the more
difficult it will be to get loan. Scoring 800 or above should be goal of every
consumer. Bellow is list of short tips on how to achieve 800 credit score or
above.
Limit the number
of credit card you sign up for at a time. The more card you carry the debt will
have to live with. If one card is not enough for you make sure you don’t sign
up for more that three cards. Also make sure that you don’t go out with more
than one card in your pocket. That way you will limit your purchases when you
are outside.
Make sure
that you make your payment on time, if possible before the end of grace period
if it’s part of the service. Late payment will affect your credit score
adversely.
Whenever
you want to apply for credit make sure that you don’t apply for too much credit
often. Credit reporting agency may score you low as it means that you can’t
live without credit.
Another
thing that reporting agency consider in scoring you is outstanding balance on
your credit account. If you are the type of consumer that often exceeds their
limit you are risking your credit score. So make sure you don’t exceed 30-35%
of your available credit. It doesn’t make sense financially to always spend all
your credit at a time.
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