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.
