To successfully have access to different credit packages an individual needs to create a commendable score. Credit score determines the credibility of a client in the eyes of potential lenders, employers and landlords and determine the risk involved in engaging the client. It is one of the major aspects put into consideration when loans, services or goods are offered on loan to the client. The score is determined by ability of a customer to secure credit and repay within the provided terms. Ability to pay in time increases the score while failure works in the opposite direction.
Borrowers need to have access to credit facility to build a credible score. In order to build a credible score, the borrower needs to borrow only amounts that they can conveniently repay without any strains. It is important that the access accorded to the bower in credit limits is not exhausted or misused to improve the ratings even higher.
One of the factors that affect the ability to repay is cases of fraud a prevalent feature in lending. Checking and making credit report enquiries are among the key requirements that every borrower needs to keep doing to ensure there are no cases of fraud. 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. 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.
Borrowers need to know and set the best times to apply for credit. Borrowers have access to varying credit packages that come from different service providers . A hard enquiry that defines the application gives an impression to other borrowers of unsatisfied client and hence raising concerns over credibility. 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. Options available to enhance this include sitting reminders on when every payment is due or using auto payment options from banks.
While credit comes in handy to save financial crisis, it is important to live within individual means. 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. 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.