Credit Rating Arithmetic

Applying for a loan and being refused, most people do not even try to find out the reason for the negative decision of the bank. As a rule, bank employees do not give any explanations. The future borrower solves the problem in a standard way goes to another institution in the hope of getting what they want. And not always his wish can come true.

This is the main indicator of the quality of the borrower’s credit history and determines its creditworthiness. When submitting an application, each applicant is assigned a corresponding scoring score in the form of a three-digit number. According to it, the bank judges the real possibility of the client to repay the loan taken and on its basis makes a decision on granting a loan. It can also affect the size of the interest rate.

There are 5 factors that determine the level of credit rating. Their impact on the borrower’s assessment is expressed as a percentage.

Try to check your credit history and eliminate all errors and errors in it. Because of them, the client may be refused, and permanent refusals will immediately affect the quality of the story. Make payments in a timely manner; demonstrate your good faith in fulfilling your financial obligations.

If you are a co-borrower, then ask about the credit history of your loan partner. Its low rating will automatically reduce yours. Apply for a loan to the bank only in case of serious need.