In borrowing, a credit report is very important to the side of the lender.It will give the financier an overview of all your money handling habits in the past including saving patterns ,withdrawing habits,frequency of borrowing and timely loan repayments. A credit score will then be calculated by the bank or any lender approached using a standardised formula against all the above factors
Finally, a loan will be approved to customers with a good credit score.With a bad credit score you may be granted a loan but under unfavorable terms.
Now am sure you want to maintain or start building a good credit score because you want easily to be approved by lenders for loans.Okay.There are 4 recommended practices that can keep you going.
Here are 4 Practical Practices to Improve Your Credit Score
(1).TIMELY PAYMENT OF BILLS.
-You must clear all your bills within the recommended time frame.Bills may include ;water bills,electricity bills etc.These offices can submit a bad credit information to the Credit Bearaeu of Kenya about you and you'll then start wondering why the banks are not lending you.(2).AVOID LOAN DEFAULTING.
-Loan defaultig is a situation whereby after borrowing, now you are unable to repay the whole or part of the amount within the given time period.This will get you into the list of loan defaulters and you'll find borrowing to be rough.You better ask for help from friends to stop this happen.(3).STEADY SAVING HABIT.
-A steady saving habit will create a big pool of finance under which you a borrow .If you trust the bank to keep your money the bank will trust you in return to keep their money (loan).-Steady saving also shows evidence that you have a living source of income (either you are employed or running a successful business).
(4).LIMIT YOUR CASH WITHDRAWINGS.
-make little to null cash withdrawals from your account.withdraw money only if it's necessary.Frequent cash withdrawings shows how much problems you have and more adversely keeps your account empty thus lowering your credit score.Now you know the best 4 practices to a good credit score.Lenders, especially commercial banks do share information about customers.If you practise the above recommended practices from one bank(for example Barclay's bank) then be confident that other banks ( for example KCB or Cooperative bank) will have your good report too and will easily allow you to borrow from them.
Start today enjoy tomorrow!
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