Factors You Need to Consider To Improve Your Credit Rating

Credit Rating factors

Applying for a loan is inevitable whether it is to be used for your business, building a house, and other important projects. Credit score is very important in determining if a borrower is qualified for a loan. By analyzing a borrower’s credit rating, a lender is able to gauge if the borrower is acceptable to be given a loan Philippines. Here are some factors that could affect your credit score.

Payment Record

The most important factor to consider is your payment history. Punctual payment or settlement of any financial obligations shows a responsible and dependable borrower.

Duration of Credit History

Having long-term loans discloses a borrower’s ability to manage proper loans on a long-term basis. This includes the duration of use for each loan, frequency of applying for a loan, and terms of agreement of your loan.

Employment History

Lenders want to know if you have the ability to pay back your loan so they will look into your employment record. They will require your payslip, certificate of employment, and other relevant documents to show that you are earning regularly. If you do not have a stable job, then have a regular job first before applying for a loan.

Monthly Utility Bills

Lenders are very thorough in determining your credit rating. They study how you manage your finances before considering the approval of your loan application. Your utility bills will show how responsible you are in paying for your basic needs. Delayed or unpaid payments will have a serious effect on your credit score. Don’t underrate utility bills as it has a bearing on your creditworthiness.

Credit Utilization Ratio

It means how much you currently owe divided by your credit limit. It is usually expressed as a percent. If your card balance is 5000 pesos and your credit limit is 20,000 pesos, by dividing your balance over the credit limit, your ratio is 25 percent. A good credit ratio should be 30 percent and below. Having a high ratio means you are extending your finances. It gives the message that you are relying heavily on your credit card to pay off expenses.

How Many Times You Borrow 

Borrowing frequently and within a short period of time will adversely affect your credit score as you are showing your lenders that you are always short of cash. Be sure to avoid borrowing for non-essential things. If you want to buy something, then save for it.

Bad Information 

When you have too much loan in your name, your assets such as your house or car has been foreclosed, you have many unpaid bills, and any other negative information about your finances, your credit score will be greatly affected. Lenders might not be willing to grant you a loan.

Make sure to establish a good financial standing. Emergency borrow money Robocash for the right reasons and you will never go wrong.

What if you have a bad credit score? 

Even if your credit score is bad, Robocash is still here to give you a chance to borrow from the company while you are in the process of improving your credit standing. Robocash Finance Corporation (RFC) is an online lender in the Philippines. If you urgently need cash then go to Robocash official site. It only takes about 15 minutes for your application to be approved. All you need to provide is one valid government ID and a mobile phone number that is not blocked. Be sure to be at least 21 to 70 years of age, a Filipino citizen, and employed or in a certain profession.

You can make a loan on the Robocash website, in the mobile application, or in offline offices too. Just register and create an account. Then, access a section where you can upload your valid ID and phone number. After that, select the amount you want to borrow which is from 1,000 pesos to 25,000 pesos. A first-time borrower is allowed to borrow up to 10,000 pesos.

It is the obligation of the borrower to use the amount loaned for legitimate purposes only. The repayment period is 30 days, but should the borrower find it difficult to pay on time, Robocash can extend the term of payment. Remember a loan must always be paid back on time and this method is used only in extreme cases.

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