Effect of Credit Rating on Your Loan Needs
In recent years, people who want to take loans from banks have started to hear the term credit rating frequently. Banks are now paying particular attention to the credit rating for lending. This credit rating we mentioned is the score that banks give to people according to their repayment status. So this score shows your place in the financial sector. While people with low credit score cannot take credit, those with high credit score can easily take credit.
In this respect, the impact of the credit rating on your loan needs will be of life degree. Banks will not want to give credit to people who are considered risky by credit rating. These individuals should try different ways of applying or increase their credit score in a short time.
Why Credit Rating Drops?
The main reason for the decrease in the credit rating is that monthly maturities are not paid on time. There are legally certain payment days on the loans you withdraw. Banks always want people to adhere to these times. However, if you delayed the loan for 1-2 days for only one month, then the credit rating will not decrease.
The situation we are talking about will happen to people who make debt delay continuity. Banks take your credit rating to risky levels when debts are constantly delayed or not paid.
What are Credit Rating Intervals?
The credit rating ranges from 0 to 1900 points. People with a credit rating of 0 means that they have never used credit before and they are considered risky by banks. These points are divided into certain risk groups, thus giving people a financial position.
All scores from 0 to 1500; It is grouped as risky, low risk and very risky. So we can say 1500 as the middle value here. For those whose credit rating is below this score, there are always certain risks. Those over 1500 can easily use credit.
Does Credit Rating Rise Again?
People with low credit ratings have the opportunity to upgrade their ratings later. To do this, you first need to close all debts to banks or put them into configuration. If the debts are in the configuration, pay the monthly maturities regularly until the debt runs out.
This raises the credit rating to a certain level. Also, apply for low-level loans or credit cards in banks to upgrade your credit rating. You can increase the credit rating by paying regularly for the products you will buy. Apart from these, giving automatic payment orders, using internet banking and using credit cards for shopping; helps you upgrade your credit rating.
How Do I Learn My Credit Rating?
The credit rating is kept in the system installed on the internet. This system, which is a financial mechanism established entirely by banks, operates in a reliable structure. It is enough to register to system to learn the credit score. You can then reveal the credit rating and all other credit registry information.
In system, a fee of approximately 5 USD will be charged for the credit note inquiry. Apart from this, you can also inquire credit notes via SMS on your mobile phones. All mobile networks have an SMS number for credit rating inquiries.
My Credit Score Is High, Why Can’t I Get A Credit?
The credit rating is just one of the criteria that banks are looking for in the loan process. Apart from the credit rating, there are other conditions sought in individuals. For example; if the loan amount you apply exceeds your monthly income; Even if your credit score is high, your application will not be positive.
In such cases, you must provide the bank with strong guarantees. In general, the two main points that banks pay attention to lending will be the credit score and the person’s monthly income. Every person who meets these two conditions can get credit from banks.