No one is happy to go to the dentist, but the relief you feel when going out with zero holes makes it worth it. Similarly, it can be annoying when some wild stranger should do a credit check, or a health check on your finances, and analyze personal information about you to judge whether you are creditworthy or not. What makes it less painful in this process is to get answers that your finances are in order. In order to get a happy response from the “financial doctors” we have compiled some tips on how you can positively influence your credit score.
Why is credit score important?
As we wrote in the article what is credit score, companies can credit check you as an individual when there is some type of credit associated with buying a product or service. When you apply for a loan or credit card, or purchase subscription services such as TV, broadband or telephony, it means that you will be credit checked. It has also become more and more common to get credit checked when applying for a job. Therefore, there are certain situations, often important events, that may depend on getting a credit score that tells the credit company that you are to be trusted as a paying customer. You will receive a letter that a credit check has been made and you will receive a score between 0 and 100, the higher the score the more creditworthy you are. What situation you are in now will have an impact on what measures are needed to get a better credit score. The best thing is to avoid having a tidy economy from the beginning so that you do not have to extinguish the fire on the day you need a mortgage or similar, since there are unfortunately no shortcuts.
Get an overview
To get ahead and know what you need to sort out, you should take a credit check on yourself first and foremost. This will give you information about your credit rating, whether payment notes are registered on you, and you receive a credit score. This information determines whether you get credit or not. By calling the credit card companies and entering your birth and social security number, you can receive a credit rating in the mail. If you contact Fisnode, formerly AAA Solid, you can also receive information via SMS or e-mail. If you want to reply to SMS, just make sure you use a mobile phone registered in your name.
Know what you need to avoid
There is more to drawing down a credit score than up, so to improve one’s own score one must focus on avoiding factors that negatively affect. The following may reduce your credit score:
- Overdraft of accounts, late payments of bills and the like.
- Payment Notes – Unclaimed debt collection claims.
- Insolvency or debt settlement
- Large fluctuations in income as this indicates a poorly stable economy.
- Individual companies with payment notes
Even if you do not have payment notes, there may be factors that reduce your credit score. Sometimes the irresponsibility of others can play a role. This means that they use statistical models to calculate your creditworthiness and calculate the historical risk associated with people with the same characteristics as you. Therefore, your similarities to other people will tell you whether you can pay for yourself or not. If you move frequently this can count negatively and young people will generally score low, simply because there is not much information to separate them. In addition, young people are in a period of life where they are constantly receiving more financial obligations. All in all, payment notes are the most important, since credit companies consider that there is a 10 times greater likelihood that you will incur a payment note if you have had one before.
Boring but light
It may sound trivial but to get a good credit score, the most important thing is to make sure you pay on time and avoid payment remarks. That may mean that you have to refuse a weekend trip to Las Vegas because the electricity bills have to be paid, but the day you are a credit check away from your dream job or a new house you will probably think it was worth it. Stable pay is the best since both reduction and increase over normal wage growth count negatively. In addition, if you take good care of your finances, we have good advice you can learn from, then read and learn and grasp the personal finances that an accountant would do for a company. If you feel unfairly assessed by a credit application then don’t give up hope. Contact the lender directly so that you can provide additional information that the company may choose to consider or not.