What damages the credit score in Bukit Gombak?

Singaporeans knew the importance of their credit score. It affects their loan application drastically. That’s why credit score management is vital for every individual. 

Do you plan to take out a personal loan? 

You can build a healthy credit score with Licensed Moneylenders in Bukit Gombak. But beware of the following:

Delayed repayment

Personal loan repayments have fixed repayments. Compared to credit cards and lines of credits, they require a minimum refund before the billing cycles end. 

Once you forget your payment, you’ll be tag as a delinquent borrower, and you’ll incur late fees. The worst part is it will drag down your credit rating. 

But don’t worry. Repaying your instant loan is manageable. You can make timely repayments by marking your calendars or set a reminder through your mobile phones. It will help you remind you of when you should pay your repayments. 

Repaying your loans on-time will increase your credit score. So, within a year, you can recover your degrading credit score. Talk to your lender. Indeed, they will advise and guide you on the right path.

Poor Credit history

Are you a reliable loan payer? If yes, you’re on your way to creating a good credit score. Greater chance of loan approval awaits you. Also, a higher loan amount is possible for your next loan application. 

However, a low credit score is a very crucial financial condition. You have a little chance of online loan approval. Or you may get approved but with a limited loan amount. 

If you have plans of buying a condo, a low credit score will allow you 60% off the value. While having an excellent credit score may give you up to 80%. 

Big difference, right? 

Multiple loans in short intervals

Did you apply for a car loan two months ago? Have you finished paying off your payday loan last month? Are you planning to apply for a personal loan today?

Please be aware that having multiple loans in short intervals can drag down your credit score. Banks can interpret this as the worst turn of events. With this kind of financial behaviour, loan approval is unlikely to happen. 

Try to avoid this one. It’s better to estimate how much money you need for a particular time. Getting a one-time big loan application is better than three consecutive loans in a month. 

Explain your financial situation with your lending company. They’re the best guide you can get. Also, they will help you decide how much you need. 

Multiple credit card applications

Take note that credit cards and loans are different. But credit card applications will also reflect into your credit score. Regardless if you finished the application process or not. 

Your credit rating drops if you have plenty of credit card inquiries in a short period. Banks recognise you as credit hungry. And it is not a very good impression. 

Loan applications can help you regain your score. Apply for short-term loans and pay it off as scheduled. Before you know it, your credit score is back on its track. 

Do not neglect your credit score. It is essential in your financial life. It can affect your loan application in the future. Avoid the habits that damage your credit score. Your licensed moneylenders in Bukit Gombak will assist you with a brighter credit score. 

Naturally, we do our best to build the healthiest score possible. There are ways to make it right. But there are habits we need to stop. Take note of the things discussed and avoid all these tendencies. Always pay on time with your licensed moneylenders in Bukit Gombak.