As part of your financial life and well-being, knowing your credit status is very important, most especially when you are unsure of it.
You might be wondering what a credit status is, why it is necessary for you to know your credit status and how to boost your credit status. Let’s walk you through this so you become conscious of having a good credit status.
What is a credit status?
Credit status is what is used to determine your creditworthiness, financially. What makes your credit status either good or bad is your credit report. A credit report is a summary of your credit history which consists of your bill payment history, loans history, current/pending debt, and other important financial information. It is important to know this report because it can affect your buying power, the interest rate you will be charged; It can also affect your chance to get a job, rent or buy a place to live, and your insurance.
As a lender, you need to cultivate the act of making sure your credit status is good to stand a higher chance of getting your loan approved on time. Also, getting your credit report can help protect your credit history from mistakes, errors, or signs of identity theft. There are a few things you need to do to boost your credit status:
- Work on your payment history:- Payment history is an important factor of your credit score. It can also include missing payments if no payment was ever made. Maintaining on-time payments improves your credit status over time. This includes your payments on credit cards, installment loans, finance company accounts and mortgages.
- Avoid Debt accumulation:– As you work on getting a good payment history, avoiding debt accumulation is key. A history of prompt payments helps your credit report. Late or missed payments can hurt your credit score. (A credit score is a three-digit number that ranges from 300 to 850, it is a number that rates your credit risk).
The lower your score, the higher the risk and the higher your score, the higher you stand on getting a good report.
- Avoid applying for too many loans:- Applying for multiple credit in a short time may affect your credit scores and you can be seen as a higher-risk borrower. Try to get a break in between your loan applications to avoid this.
In all of these, make sure you apply for a loan only when you need it and have a plan on how to repay back. Delaying just one loan payment goes a long way in affecting your credit score and report. Do yourself a favor by knowing the interest rate before applying for a loan so that the rate will not be a hindrance to making payment on time.
Although, in Nigeria knowing your credit status by checking credit score is not being talked
about often but have it in the back of mind that it is very essential and a gateway towards getting an approved loan with lower interest on time if you have a good report.
If you do not know how to check your credit status or where to check it, we are here to help you with that. Kindly visit (https://oxymon.co/credit-status) to get started.
You can download your report after checking it or request a copy to be sent to your mail.