How to build a positive credit standing? This question often arises when you intend to apply for a loan. The better your credit history, the better your chance of getting a satisfactory amount and good loan terms.
How can you make your story positive? How to build it In the following article we will give you practical advice and dispel all your doubts.
What types of credit history do we distinguish from?
Let’s start with this – we distinguish 3 types of credit history: good, bad and lack of it.
- You will have a good credit history when you pay your liabilities on time and you are not in arrears with payments.
- Bad – if you do the opposite – you will have some debts, late payments and no regular repayments.
- However, no credit history means that you have never taken installments, you have no overdraft or credit card and you have not had the chance to build a good or bad history.
How to build a positive credit history and get a loan on good terms? Here are some practical tips.
Take the equipment in installments
Regular repayment of monthly installments is the first step in building a positive credit history. Remember to make an informed choice – decide to buy what you really need. Maybe your laptop broke down? Or you need a new phone? Choose wisely so as not to regret it . Also pay attention to the amount of installments – it is important that you are able to pay them every month.
No less important is the period for which you make the commitment. We know – the shorter the better, however, it is associated with larger installments. Also remember that banks require that the purchase in installments be spread over a minimum of 6 months. Currently, many stores and service providers offer 0% installments, which means that you will not pay any additional commission or fees! You will give back exactly what the purchase cost. The choice must be individually tailored to your financial capabilities.
Apply for a small loan
If you already have the purchase of installment equipment behind you, now is the time for the second step – apply for a small loan and pay it back within the set deadline. This step will help you show your prospective lender that you can pay your debts regularly.
Banks and non-bank institutions have favorable offers for people who apply for their first quick loan in a given company – in these offers the APRC is 0% . Browse the offers of various companies and choose the one that suits you best.