Credit Rating: – How You Are Scored
Getting approval for any type of loan depends on your credit rating. If you have an average credit rating you will find it almost impossible to get approved. It’s possible to get good rating or even improve you credit rating. Most companies almost use the same rating system and if you are able to know more about it you should be able to have better credit score.
Your age is the first factor which it’s almost impossible to do anything about. Yes it’s possible to lie, but don’t because it will make things more difficult for you in future if the creditor get to know. If you are between 24 to 64 years of age you will get one point. Any age below or above that will score you zero point.
If you are married you have the chance of adding an extra point to your score. If not you will score zero as most creditors see you as a higher risk. Also if you have no dependants you will score zero. But if you have between one to three you will add to your points. Here is how it works – if you have no dependants creditors believe you can skip town and not pay off your credit.
Creditors will also want to know more about your roots. They will want to know where you live. Owning a home with a big fat mortgage or even without a mortgage will give you more points. How long you have been in your present or previous residence also adds more points to your score. If you’ve move too often you will score zero points. However, if you’ve stayed up to 5 years before moving, you will get more points as it shows you are a fairly stable person and therefore a good riska lender.
Other factors that will add to your point are your years in work, particularly if you stay with one employer for a long time, the kind of job, your monthly income, present debt status, previous credit history and a good saving or checking account history.
