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. It is one of the major aspects put into consideration when loans, services or goods are offered on loan to the client. 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. Ability to pay in time increases the score while failure works in the opposite direction.
The first step in building a credible credit score is to have access to credit facilities. In order to build a credible score, the borrower needs to borrow only amounts that they can conveniently repay without any strains. 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. Raising the issue with the lender is the best approach to deal with any case of fraud and this ensures it is sorted to reflect the agreement in place. The platform provided to solve the situation is through writing a letter of credit dispute to the lender and make a follow up to ensure it is received and effected.
When and how to borrow is an important feature in building a credit score. Borrowers have access to varying credit packages that come from different service providers . The score is affected by numerous instances of hard enquiries made by the borrower to different lenders. To avoid negative impact on the core, the borrower need to make a soft enquiry that does not reflect on the score.
To improve on the ratings, the borrower needs to make payments on time. 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. Borrowing should only be done only when it is important and no other options available. Seeking for credit that is below the available limits is a sure way to raise individual ratings. Borrowing the amounts that are below the set limits ensure the borrower is better positioned inn making repayments and in such way increase the credit ratings for higher loans when need arises.