Your credit score is the key to getting the loans needed from banks and money lenders to help you pay for big expenses such as a vehicle or a home.
However, a good credit score does not just happen as you must build it up over time using a number of proven methods while avoiding the pitfalls which can drop your credit score and place you in a real bind.
Fortunately, there are several simple methods you can use to boost your score and not have to take out a bad credit personal loan which can be very expensive. Maintaining good relations with your credit company in Singapore is a good start, but what follows are some tips you can use to keep your credit score up.
Keep Your Job
The longer that you keep your job, the more likely you are to get loans from lending sources. For example, it is far easier to get a payday loan if you have been with the same company for two years than just six months. Keeping a steady job tells the creditors that you are reliable and far less likely to miss a payment on your loan. While you can switch jobs when needed, having a history of working for different companies where you were employed at least one year can be most helpful in getting you loans.
Pay Your Bills
When you pay your bills on time and especially when you pay them early, banks tend to really like you. Going for a year or more without missing a payment can help build up your reputation when it comes to your credit. Plus, if you pay early you will not have to remember at the last minute to get your bills paid. Items like car insurance for example should be paid every six months instead of each month because that will actually save you money while keeping your payments on time.
Pay Off Debt ASAP
There are times when people slip and fall into debt, such is life. However, by paying off the debt quickly you are telling lenders that it is of great interest to you to be out of debt as soon as possible. If you have a credit card for example, you’ll want to establish your credit by using it and then paying off the amount due as soon as you can. After six months to a year, your credit score will grow as you show your capabilities in paying off debt.
Stay with One Bank
The longer you stay with a single bank, the greater your credit score may grow. Banks that have known you for a while will be more comfortable when it comes to making a loan, particularly if you have a good size savings account.
Increase Your Assets
The more you own, the more banks and lending institutions are likely to trust you. Things like owning a vehicle or home, having a savings account with plenty of money and other assets tells lenders that you are in good financial condition.
By maintaining your credit level, you can avoid having to take out a bad credit personal loan or even a payday loan. Check with your credit company in Singapore for more information.