Credit score, also called credit score, is a numerical data obtained as a result of examining the debt and payment behavior of bank customers. People with high credit scores can easily take out loans and get high limit credit cards. However, people who do not have a high credit score cannot get a credit card with a low limit, let alone a loan. Because this note reveals how much the bank can trust the person who will be its customer.
Credit rating system is applied in all world banks. The logic is simple; Would you lend money to someone you don’t trust? The bank also wants to trust the person it will serve, and therefore examines its previous debt and payment habits. Maybe not immediately, but there are some methods that you should apply to improve your credit rating over time. How to increase the credit rating, let’s examine in all details.
How to increase credit score?
Try to make your debt payments regularly:
You can postpone your debts even for a few days. Of course, this may seem harmless, but no one likes late payers. When you deposit your debts late, even for a few days, and this situation becomes permanent, it will negatively affect your credit rating. Even paying your debts on time for at least a few months will be enough to increase your credit rating.
Be sure to pay the full amount of the debt instead of the minimum:
Paying only the minimum amount of your credit card debts instead of paying the full amount may seem like a profitable transaction at the moment. But this means that your debt is never zeroed. So in the eyes of the bank, you are someone who never fully pays off their debts and your credit rating is low. Therefore, pay off your debts in full for at least a few months, instead of the minimum amount. You will soon see your credit score improve.
Do not stay away from banks:
Some people prefer to use cash because they do not like things like banks, loans, interest, credit cards. This situation, which is seen as an extremely easy and safe method, actually not only lowers your credit rating, it destroys it. Because one day, when you have to work with banks, the bank will have no idea about you.
It is not correct to say that you must open a bank account immediately, get a credit card or withdraw a loan. At least take a low-limit loan and pay off your debts on a daily basis. Keep your contact information in banks up to date. In short, let the banks know you a little bit. Thus, both your credit rating will be high and your previous transactions will seem more reliable when you make a larger transaction in the future.
Let your earnings and debt be proportional:
This article is actually a piece of advice that will sound good not only for your credit score, but for life in general. Never borrow large amounts of money you don’t have. Know the money you have, predict how much money you will have in the future, and if you have to borrow money, stretch your feet according to your quilt. No bank trusts someone who owes more than it earns. Therefore, always try to avoid debts that will put you in trouble.
Be sure to pay your bills regularly:
Since payments such as natural gas, electricity, water, mobile phone bills are generally small, many people pay these bills. Don’t be afraid to delay a little. But even such small payments can affect your credit score. Even if they don’t have credit or credit card debt, no bank would want to work with someone who is constantly in debt. For this reason, you should pay such bills on time and even conquer the heart of the bank by giving automatic payment orders from banks.
Don’t vouch for everyone:
Being a guarantor for a loan withdrawal may seem like a procedure on paper, but being a guarantor is like taking out a loan. Okay, the borrower didn’t take the money and run away, but let’s say he always makes late payments or delays payments in some way. This will also affect the credit rating of the guarantor. We know it’s hard to say no when a loved one asks you to vouch for it, but you should think about yourself first and not vouch for anyone you don’t fully trust.
Close unused bank accounts and credit cards:
Let’s say you opened an account at a bank where you don’t work continuously for a temporary reason, or you got a credit card on time. You do not use it, but keeping those accounts open means annual payments. Without realizing it, these annual payments turn into huge debts. In addition, having many bank accounts and credit cards that you do not use will be a suspicious situation for many banks. So take a few moments and close your unused bank accounts and credit cards.
Don’t apply for a loan often:
Let’s say you need money and you decide to take out a loan. You went to bank A and they didn’t, you went to bank B and they didn’t. You may think that there is no debt, no problem, but every loan rejection will lower your credit score. Apply for a loan at the banks you already work with. When you are rejected, instead of immediately applying to another bank, check your credit score and apply the methods we described to increase it.
Check your credit score from time to time:
If everything seems fine but you still can’t get the loan I want or if you say you can’t get a credit card with the limit I want, it is useful to check your credit score from time to time. You can find out your credit score during the loan application or with the findeks report you can request from your bank. Credit rating provisions are generally as follows;
- 0 – 699: Most risky
- 700 – 1099: Moderate risk
- 1100 – 1499: Low risk
- 1700 – 1900: Very good
(9807100)1500 – 1699: Good
You can share your thoughts about the credit rating system in the comments.
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