Every person who wishes to procure a credit card or loan will definitely have to put up with the regulations laid down by the lender. A significant issue before any credit application can be approved has to do with your credit score or credit rating.
Your credit score is what the lender or lending institution will look at before they can decide whether you are qualified to receive the credit. When doing this they look at your present credit ratings with respect to your past credit ratings as well and this helps to tell them if you are in the habit of honouring you credits or not.
It is common place to find that in every nation they have their own credit standard which is also dependent on the financial condition of the nation. You find that in the developed nations it is easier to acquire credit than in the so called third world countries. The United States for instance has a national average credit score which is around 580 to 650 and what this means is that if your credit rating is less than this amount you might not be given credit and if higher stand a higher chance of receiving credit.
There are some things you can do however to help you improve your credit rating, and to do this you can follow this line of action;
Avoid late Payments: Late payments can cause your credit rating a lot of harm, because what this tells the lending company is that you are not very good at keeping your own end of the bargain and this will lower your rating and discourage future lenders.
Also ensure that other household bills are paid on time as this also affects your credit rating. Be very much aware of your payment due dates and ensure that there is money available in your account if you pay by direct debit or ensure that you pay up as soon as you receive your payments slip, and not wait to be sent a warning before going forward to pay.
Get Expert Advice: It is very easy to get carried away with what might look like a great loan deal initially, but you soon find that you have signed away your life when you now read between the lines…only this time it is too late. Before you tale a loan or credit that you are not completely sure how it will play out it is advisable to seek expert advice and get proper direction on your course of action.
Though you might think it expensive to get a financial consultant at times, but I can assure you that in the long run a wrong decision will cost you a lot more than any financial adviser will ever charge. A financial adviser is more likely to see the hooks where you are unable to and can advice you on the pros and cons of a particular loan before you take it out.
Watch Out For Best Rates: Most people do not bother with this as they just simple take the first loan offer thrown at them. Working out your interest rates properly will help you know exactly how much repayments you will be making. You need to clearly see how much repayments you will have to make to help you plan properly towards your financial future. Failure to do this might mean you end up with a loan or credit you can not repay and eventually destroy your credit rating. The legal money lending in Singapore is very common as it is mandatory for such money lenders that they must have a legal license for the business, so the individual who is asking them allot money will be at ease.
Consolidate Wisely: Consolidation is a good way to get out of debt if properly used, but unfortunately not many know how to use this as they soon get carried away the moment they receive that extra cash.
Before you take out a consolidation you must be sure how you intend to use this loan and not see it as another pocket money for you to hit the mall with. Consolidation loans must be put to prudent use as it is a life line that must be used carefully otherwise you end up in a worse state.
Be Own Accountant: Yes no accountant is better than you because you know what you spend and you know what your credit card statement is likely to be before it comes…and if you do not know then you have a big problem on your hands might be spending more than you can really afford. Hold yourself accountable at all times in money matters.