Why And How To Raise The Credit Score And Ensure Access To Bigger And Better Credit Solutions
Credit score has become an integral measure in modern lives. This is a measure employed by employers, financial credit institutions and credit stores among others to determine the credibility of a potential client. This makes it a major determinant in accessing financial and credit services from various circles. Determination of the credit score is done through the clients ability o access financial assistance on credit and the ability to make the agreed payments within the desired time. In this regard, it is the ability to repay for the credit advanced within the agreed terms that increase the score while failure to do so decreases the score significantly.
Borrowers need to have access to credit facility to build a credible score. However there is need to ensure amounts borrowed are within individual means to ensure consistent and full repayment. While it is important to have access to credit facilities, not borrowing increases the rating with indication of a responsible borrower who only access in time of need and not because of availability of credit.
One of the factors that affect the ability to repay is cases of fraud a prevalent feature in lending. To avoid the disappointment that may arise from fraud, the borrower needs to keep checking their credit reports to ensure it is consistent with the amounts borrowed and repayments being made. Where there are such an occurrence identified, the borrower needs to raise the issue with the lender with immediate effect to ensure it is sorted accordingly. A credit dispute letter is the provided platform where the borrower makes any complains on the credit report to ensure it is in the attention of the lender and effectively adjusted.
When and how to borrow is an important feature in building a credit score. Credit facilities are available from different quotas for the client but not mandatory that they all have to be used. Making applications for credit facilities follows what is referred to as hard enquiry and is reflected on the score. To avoid negative impact on the core, the borrower need to make a soft enquiry that does not reflect on the score.
One of the greatest ways to improve on credit rating is to make timely payments for loans and pending bills. This can be effecting through use of auto payment options or setting reminders to ensure you are well aware of the time to repay a loan or settle a bill.
While credit maybe accessible, it is not a platform to change individuals lifestyle. Borrowers need to borrow only that which is important. Borrowers need to take credit that is well below the accessible amounts. This not only ensures there is adequate ability to repay but as well leaves room to access more for an emergency situation that may arise while the previous amounts are not fully cleared.