How to Grow Your Creditworthiness

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credit worthiness

Your credit score is a mathematical representation that appears in a credit bureau report. This information is used to determine your credibility. The information is made up of elements like loans, overdraft, requests for new credit, outstanding debts, how you pay your bills, how much debt you have etc. This information about you is mostly used by financial institutions like banks, insurance companies, and service providers to access the likelihood of you being able to repay any credit given to you i.e your creditworthiness. Based on your credit score, you will either be accepted or rejected.

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In order to improve your creditworthiness, there are five easy things you can do;

  • Pay your bills on time
  • Avoid having too much debt
  • Try to use only 35% of any credit limit you are given
  • Avoid making too many applications for credit at the same time
  • Only take credit when you really need to and when you are genuinely sure you can repay that credit at the stipulated time.

It’s important to obtain a copy of your credit report in order to make sure there are no corrections or amendments that need to be made. This will also help you maintain a healthy line of credit.

 

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