How your credit report reads influences your chances of getting a loan—and its interest rate—in future. There’s only one way to build credit, and that’s by being credit smart.
Here are 6 proven ways to be credit smart.
1. Review your credit report
Did you know almost 70 percent of credit reports have inaccuracies?
Inaccurate entries, like presence of a debt that you’ve long paid off, can severely pull down your credit score. It is a prudent practice to review your credit report at least once every 12 months to screen it for errors and to know what’s on it.
In case of an inaccuracy, file a complaint with a credit agency, along with relevant evidence.
2. Know your credit score
Your credit score is a numeric representation of your credit worthiness. Typically, higher the credit score, better the chances of getting a loan at a favorable interest rate.
3. Make Payments on time
If you’ve been late in paying bills far too many times in the past because of carelessness, set up reminders or have the bills debited from your account automatically on a said date.
4. Have a good mix of loans
If you’ve different credit types in your portfolio and a history of making payments on time, it shows you’ve good ability to manage all kinds of credit.
A history of repaying revolving accounts, like credit cards, demonstrate your ability to manage your finances better, and for obvious reasons because here you control what you spend and how much you pay every month.
5. Adhering to 30 percent credit utilization rule
Your credit score takes a hit if your credit utilization is more than 30 percent. Lenders perceive you as credit hungry and financially irresponsible. Keeping a tab on how much you’re charging to each credit card, setting up balance alerts, and, if needed, raising the credit limit are some intelligent ways to keep credit utilization under the limit.
You might also want to think twice before closing an account, as it can cause your credit utilization rate to increase. With that said, eliminating a card with a high fee or interest rate is recommended and doing so will not have much impact on your score.
6. Apply for a new loan only if you need it
Too many loan requests in a short period of time indicates you’re not in control in of your finances, a fact that lenders don’t like and which reflects poorly on your credit report.
Licensed Moneylender in Bugis – Singa Credit Pte Ltd
Established in 1992 and previously known as Yong Seng Credit,
Singa Credit Pte Ltd is Licensed Moneylender in Bugis regularly updated with the latest regulations to be in line with the requirements set out by Registry of Moneylenders.
Please feel free to call 66946166 for more info on our lowest interest rate in Singapore or walk in our office 470 North Bridge Road #02-01 Bugis Cube Singapore 188735.