How to increase your credit standing?

Are you planning to take out a loan for a larger amount? Are you going to buy an apartment on credit? It is worth preparing for it and improving your creditworthiness, if possible. In this article you will learn some practical tips on how to increase your credit standing!

Your home budget

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The higher your income, the more creditworthiness you can have – simple. Therefore, if you are planning a loan, e.g. for an apartment, it is worth trying to maximize them in advance, e.g. ask for a raise or reduce unnecessary expenses and financial burdens. Pay off other liabilities as soon as possible – other loans, cancel credit cards and account limits – even if you don’t use them. If you are unable to pay back previous loans and advances, consider consolidating them. The consolidation loan will make you pay a lower monthly installment.

Loan with another person

Loan with another person

If you want to increase your credit standing, one way is to take out a loan with another person. If the situation allows, you can consider credit with your partner, but also a parent or sibling!

A longer loan period can significantly affect the monthly installment. The amount of the installment for it has a significant impact on our creditworthiness. Therefore, if we want to increase our ability, it is worth considering extending this period. However, it should be remembered that the longer the loan, the more we will pay the bank for its service.

Credit History

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Make sure you have a good credit history in advance at BIK. There are several rules by which this can be achieved: Pay your financial obligations on time.Consider buying something in installments – if you have no credit history, the bank knows nothing about you as a borrower. Therefore, if you have never taken anything for a loan, it is worth taking it for a small purchase, even if you do not need it. If you have a problem paying off your loan, negotiate with the lender. Avoid taking a new loan to pay back your previous one. This can lead to a debt loop. You can read how to get out of financial debts here.

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