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CategoriesFinancing

A credit score is a number accredited to you based on your financial habits. Lenders look at it before loaning you to gauge your probability of paying back.

A good credit score

A Credit score ranges from 850 to 300.700 is considered a good credit score while 800, is an excellent credit score. A higher credit score increases your chances of not only getting a loan but also a better interest rate.

When calculating a credit score the following factors are considered:

  • Payment history for past loans and credit cards
  • number of new credit accounts recently opened
  • Amounts owed
  • Type and age of credit accounts
  • Number of inquiries for your credit report

How to boost your credit score

if your credit score isn’t precisely where you want it to be– don’t worry. Your credit score can be improved in a variety of ways.

Request a credit report

Knowing where you are first is necessary before you can increase your score. Requesting your credit score will show you the factors that led to your current score. You can use this to pinpoint your areas for improvement. If you see a mistake on your credit report, be sure to dispute it immediately so the data can be rectified.

Settle or limit debts

By settling your debts, you can raise your credit score quickly. Aim to pay off all of your debts on time.   Your lenders will regard you more if you pay more than the required minimum each month.

Pay all bills on time

Paying your bills on the day they are due will give you a boost. A good tip will be to automate your bill payments and to confirm whether they went through.

Reduce credit inquiries

keep your new credit applications to a minimum. When a creditor makes hard inquiry on your account their inquiries remain in your account for nearly two years. Creditors don’t like too many players in the game, when they are too many, they may negatively impact your score.

Grow your credit history

The more Long-standing credit accounts that are consistently settled in full reflect positively on your repayment reliability the better for you. They show creditors that you have been managing your finances well for a while.

The bottom line

You might think about checking your credit score if you’re considering obtaining a house, a new automobile, or establishing a business. Use the approaches we covered above, and you should be set to go. For any assistance kindly contact us on 0708888222/0711082929 or email us at info@mintvillas.co.ke

 

 

 

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