Evaluation Of Credit History: The Main Factors
People who are often interested in their points want to keep their financial situation under control. But, in order to properly evaluate one’s candidacy as a positive borrower, it is important to know the main criteria that really influence the final assessment. Here is a short list of the most important ones.
Amount of debt
There are valid reasons why people around you recommend that you do not spend all your money on a credit card at zero. It is very important to monitor the balance between the amount that you approved and the one that is present in the credit account. Experts recommend keeping the amount of debt at a level below 30% of the available limit, and even better around 10%. This will have a positive effect on the assessment of your credit history.
At the time of scoring a potential borrower, credit organizations pay attention to the types of loans that the client took. Of course, it would be more interesting for them to be a person who took successively longer loans.
In this case, it refers to the age of your CI, and not your personal age, as many assume. A longer history will certainly get a higher score than a shorter one.
This moment can also play a big role when you are given a credit history score. If there are frequent marks in the report that the client applied for a loan in a short period of time, this could adversely affect the scoring.
The most important factor when deciding on your assessment. If all of the above criteria speak, rather, about the position of a person in society. How much money he can have, what needs he borrowed, how long he began to turn to banking organizations, and so on. That is exactly the payment history that tells the bank manager the most important thing – the attitude of a person to debt obligations. If you did not make delays, paid in advance, repaid the loan on time, then you are a positive borrower and there should be no problems with you for the duration of the new loan agreement.