How to Improve Credit Rating?
At this time, people have learned most of the terms of the bank and have been able to do their job very consciously and knowledgeable about the banks.
Undoubtedly, the term that most confronts and perhaps prevents it from attracting loans, especially when taking loans or trying to do things like limit increase, is undoubtedly the “credit rating”.
We recommend you to review this article, which we have prepared regarding the methods of upgrading the credit ratings, which should be read with caution, especially for those who have been rejected by banks for “low credit rating”.
But before we explain how we can raise the credit rating and the part, it would be much more appropriate to talk about important points such as what credit ratings are given, what to pay attention to and why they fall.
What are Credit Ratings Given?
While there are generally similar factors when determining credit ratings, each bank has its own unique scoring system. Therefore, your credit rating may be different in each bank. Even if your credit rating is the same in all banks, it is possible for different banks to interpret this result differently.
For this reason, you can withdraw your credit immediately without encountering any problems in another bank, while your credit rating can be interpreted very low according to one bank and your loan request can be rejected.
In fact, the most surprising thing is that a bank that did not like your credit rating a while ago and refused to give you a loan may accept to give you a loan after a while as its own demands have changed.
Therefore, your withdrawal of credit is completely at the discretion of the banks and when evaluating their credit ratings, each bank has a separate evaluation criterion, which may change from time to time. However, it cannot be ignored that your credit rating is a very important factor when you apply for a loan.
So, what are the points that are taken into consideration while giving credit rating? If you need to list the items item by item: one- ENT score:
When we look at these factors that affect the credit rating, which is written item by item, it is possible to find the answer to the question “Why is my credit rating low?”
If your monthly net income is low and you have applied for a loan amount that is much higher than this, it is natural to reject your request. Or a bank you will be working with for the first time may refuse your credit by examining your history with other banks through the ENT system.
It is also worth noting that credit requests made to many banks at the same time negatively affect your entrepreneurial score.
How Can I Upgrade My Credit Rating?
Unfortunately, there is no way to migrate your credit rating upwards, but if you pay attention to the following, your credit rating will increase over time:
one- Reduce your debt When you reduce your debt to 30 percent, your credit rating increases automatically. For example, when you have a debt of 10 USD, you should pay 7 USD of this and leave a debt of 3 USD.
2nd- Request a new credit card It is quite surprising, but requesting a new credit card automatically increases its credit rating.
3- Other credit debts Keep in mind that paying your other credit debts on time and regularly affects your credit rating by 15 percent.
4- Do not close your credit cards Most customers try to cancel their credit cards, which they have already finished their debts, but this affects your credit rating negatively.
Even if you do not use it, it is useful to leave your credit card open.
5- Get an additional card for individuals in your family Each additional card you request for your spouse and friend will have a positive reflection on your credit rating.
6- Track your credit reports You can see your mistakes and take the necessary measures with these reports that you can follow from banks.