A credit report in our time is one of the most important documents, the rank of which depends only on its owner. Many already know that a positive score makes it easier to take the necessary credit easier and faster, as well as, in some cases, save on an annual percentage. Here is a story about how one person transferred his CI from status very well to excellent.
Why are credit scores so fragile?
One ideal borrower had a credit history score of 819. While continuing to treat his finances responsibly, he learned that his score was 770. To clarify the situation, it was necessary to order several reports from different bureaus.
Investigating the negative aspects in a credit report, for some reason , the phrase “short credit history” was often heard. And this is despite the fact that its owner has regularly taken loans for 12 years. The fact is that to determine the term used, and current loans and to calculate it you need to take the average number of all loans. So, taking a car loan three months ago for 5 years shows that at the moment it is difficult to assess the borrower during the course of this loan.
You should always keep track of your credit history.
Do you think 60 points from a two-year rating is a bit? For different people, the answer may be different. Many will think that with a total score of eight hundred, some six dozen weather will not do. But you can have two auto loans and a mortgage during this period of time, which can be refinanced in a year. The result of this procedure may depend on your credit history.
Thus, your scoring may affect the new loan, or if you need to take a loan that may be needed, or the one that you already have. After all, it has long been no secret that people with a good credit history can rely on the best individual conditions for credit products. For a good client today there is a struggle even among banking organizations.
Return 60 points to credit history
Of course, you need to abandon any new loans for some time. You need to reduce your total debt and strengthen your capital. It will take a lot of patience, because, as they say, “to break – not to build”, but a good rating will play you a good service – you can qualify for a larger amount than others and for a lower interest rate.