After applying for a loan or credit, the creditor will look at our creditworthiness. It depends on this whether our request will be granted. Monitoring and actively building your credit history will allow us to get a number of additional benefits, so it’s worth taking care of your credibility beforehand.
What is credit standing?
Creditworthiness determines our ability to settle our liability within a specified period and is determined on the basis of our past loans, credits and repayments. The lender will look at whether we have regularly paid our installments or bills.
On this basis, among other things, it is able to determine whether we will reliably and systematically settle another liability along with any interest. Information on creditworthiness is collected by the Credit Information Bureau. There is data on all our obligations – both those repaid on time and late.
The only way to remove negative entries from Credit Checker is to pay off all loans. Therefore, it is worth regularly visiting Credit Checker and business information offices, verifying data about yourself. Let’s remember that the lack of any credit history is not necessarily in our favor because the lender has no reason to determine if we are predictable or trustworthy.
How to improve your credibility?
If our application was refused by the lender because of negative credit history, it is worth using simple ways to build your image as a reliable borrower. In such a situation, e.g. a purchase spread over low and easy to install installments may be a good step.
Timely payment very quickly and with minimal effort can improve our credibility. It is also worth checking carefully whether you have paid all debts.
Sometimes, even one unpaid bill is recorded as late payment and negatively affects our credit standing. Remember that the fact that payments are not made on time is important, regardless of the amount due.
Benefits of reliable payment of obligations
Good credit history is a signal for the lender that we are honest, which in turn allows us to obtain specific benefits. The applications of reliable lenders are usually dealt with faster thanks to simplified procedures. The commitment is also granted on more favorable terms, including negotiations on interest or the number of installments over which repayment can be made. Building your credit rating is extremely important.
Already after the timely repayment of the first loan in Good Finance Bank, our client’s creditworthiness increases, and hence – the client can receive a higher amount of the next loan. Let us remember that increasing creditworthiness is usually a lengthy process that is affected by all our past commitments.