This is a problem for those of you who often deal with credit cards or for the refund process and other loans.
There is a discussion here that is very important to you as a customer, as it will be linked to the future.
Nowadays it is not taboo for someone to try another loan after paying the loan they already had.
But the question is, is what you propose easily accepted by the lender? On the other hand, if you have a good credit history, then this is not going to be a problem.
Because your track record is checked in with the signer when you use the services.
This credit report will provide feedback to potential lenders wherever your deposit is accepted or declining, as well as a basis for providing interest on your loan.
From there, the evaluation is done and the results are completed.
All the data on your part as a credit client have a value as the guarantor’s reference by providing assistance at a later date.
The solvency function is certainly very clear here. Because lenders will strongly support the investigation process and the amount of the loan to be approved.
Similarly, the creditworthiness of the recipients of the loan (the client) will help to maintain broader access to the lender by relying on its own financial reputation without relying on the ability to provide security.
For lenders, there will be some criteria that become standard. Here are the credit score criteria set by one of the banks.
- Workplace (Business Line)
- Number of self-financing
- Working hours
- Relationship with the bank
- Number of parents
- Types of Credit guarantees
- The wife’s profession of husband’s husband
- Net income
- Current state of credit
- Other income
- Possession of credit cards
- Job Title
All the information of the above criteria has different weights. Important information such as the accuracy of your loan payments have a higher value than others.
Like the credit score feature mentioned previously, the credit rating of the bank will help determine if your loan is approved, and also can determine the amount of credit you get, how many terms you receive and how much interest The loan will be.
If your balance turns out to be small, you may still be able to get a loan, but with higher interest rates, or you are required to provide security.
Have you had a bad history in terms of credit score? Don’t worry, let’s look at how you improve your credit score.
How to increase your credit score
1. Use credit cards regularly
The great effect on your balance level is the credit card.
So don’t be surprised if you want to borrow or buy on credit, the lender will ask you if you are a credit card user or not.
The credit card itself is ideally a substitute for cash as a means of payment. So if you never use your credit card, no data will be stored in the bank.
You can use credit cards for payments, especially expensive items, such as airline tickets and hotel payments, or the purchase of electronic goods.
After that, a credit card is used for a smaller payment like food in a restaurant. It can progressively improve your credit worthiness reputation.
2. Avoid Delinquent Credit Card Bills
Abusive bills are strictly prohibited when using credit cards. The level of customer credit coltilité is disposable banks that evaluate the quality of a person’s credit.
This level is divided into five criteria, namely soft payments, special attention payments, lower loans, dubious and bad.
Tips for you as a credit card user, try to pay 10% monthly bills. But if you are able to pay the full course, it would be best to avoid high interest every month.
As with credit rates, make the same effort to pay 10% of the original invoice and pay as many bills as possible on time.
3. Reapply if your credit approval is rejected
If your credit or credit card deposit process is denied, indicate the wait several months before the deposit.
During this waiting period, you can check what is wrong with you as a customer.
You have requested a loan of more than 30% of income, for example, or you have other repayment tasks. Try to concentrate on paying your debts first.
After that, you can first apply for a low-limit credit card. This can be considered a positive indication for the bank that you are a trusted debtor who can help improve your credit score.
Remember that credit cards are just an alternative type of payment process and not necessarily a habit. And even if you really have to use the credit system over and over again, it’s not a problem either. Keep your good credit score, a commitment to it, and constantly to live it. The higher your balance, the quicker your credit application will be.