Factors affecting credit rating
The credit rating depends primarily on a few indicators. Bad credit auto loans guaranteed approval so often, solvent borrowers with financial discipline are surprised that their rating is constantly being lowered.
- Discipline and responsibility of the borrower in terms of fulfilment of the assumed credit obligations.
- The total period of lending, that is, the period of use by the borrower of bank loans: the longer the period, the higher the degree of confidence in the client.
- Frequency of applying for financial assistance. If a borrower sends out applications en masse, he creates for himself the image of a person who is constantly in need of money because he does not know how to live within his means.
- The amount of current debt is about the level of income. The debt burden will not allow you to get a new loan.
- Types of loans – financial groups more often trust customers who draw up various banking products.
How to find out why your credit score is falling:
There may be several reasons for this:
- The criteria for evaluating a borrower in the bureau have changed.
- An error has crept into your credit history.
- There are debts unaccounted for by the borrower for taxes, fines, and utility bills.
- The bailiffs initiated enforcement proceedings, and information about this got into the bank.
If the credit rating gradually tends to “0”, there is no need to wonder for a long time: “What should I do?” – it is necessary to act:
- Request a credit report and carefully study all the points.
- If there are errors, collect the evidence base and require the BKI to correct them.
- If you find a non-existent loan taken in your name, contact the police and the court.