How to improve your credit standing?

Regardless of what type of loan you apply for, the bank will check your creditworthiness and history in a Credit Checker in the process of processing your application. When applying for a small loan, we usually don’t encounter any major problems in this matter.
However, if you plan to take out a housing loan or a larger cash loan (or consolidation loan), it is worth analyzing your financial situation and checking your creditworthiness in advance.

Its significant understatement can be affected by many aspects that we didn’t even think about, such as a credit card we have and not used, or seemingly innocent television installments. We have a real impact on improving our creditworthiness.

Cancel your account and credit card limits

Cancel your account and credit card limits

We often decide to apply for a credit limit or a card, although we do not actively use them on a daily basis. For many people, these financial solutions provide security in the event of sudden, unforeseen accidents. Unfortunately, both of these credit products (even if we do not use the limit granted to us) cause our creditworthiness to be lowered.

So if we want to apply for a consolidation, cash or mortgage loan, let’s go to the bank first and give up the credit card and the bank account limit. In this case, the situation is completely different than in the absence of a credit history where it is advisable to set up a card in order to build a positive history in Credit Checker.

Pay off all loans

Each open financial liability decreases our creditworthiness. Let’s try to repay all current cash loans before you apply for a loan for the flat or for any purpose. We can overpay the remaining installments until the end of the loan agreement and close the loans or wait a few months until we pay the debt according to the current schedule.

If this is not possible, because we will not be able to repay the whole liability at once, and the loan is for a longer period (4-5 years), then let’s try to repay two installments at once for at least some time. Each dollar less to pay back increases our current creditworthiness.

Do not submit multiple loan applications at once

Do not submit multiple loan applications at once

Many people wanting to get a mortgage as soon as possible, at the same time applying for it in several different banks. This is an error, because each such application is visible in Credit Checker as a credit inquiry and causes the borrower’s point value to be underestimated (scoring in Credit Checker is lower). Act wisely. By using publicly available tools, such as loan comparers or calculators.

Choose 2-3 bank offers that suit you best and apply for them individually and in turn. Perhaps you will receive a positive credit decision already in the first bank and for further applications, you will not have to submit at all.

If you are interested in a loan, you should contact a loan broker who knows the applicable banking procedures, loan offers and the possibility of obtaining financing from a given bank. Often, the decision is negotiated at the decision-making level, which is why the client has no unnecessary queries in the Credit Checker.

Pay all your obligations on time

Pay all your obligations on time

It is not only about loan installments or shopping installments that you are currently paying off, but also gas, electricity, apartment, telephone, Internet bills and even parking tickets or free-riding trams. Any overdue payment will spoil your credit history in a Credit Checker or is recorded negatively in BIG. This will adversely affect your credit standing. The matter will get even more complicated if you hit the list of debtors in KRD. Keep your finger on the pulse and avoid such situations.

Check your data in the Credit Checker.

Unfortunately, there are delays and mistakes everywhere, also in the Credit Information Bureau register. So before applying for a housing loan, it is worth registering on the Credit website and download the “Credit Checker report”.

It may happen that an institution from which we once borrowed money entered incorrect data or that the bank loan we repaid long ago was not closed in the register (some banks and financial institutions update their clients’ data quite slowly). Let’s make sure that the information about us is true and current.