Many times, when you apply for a job or for a loan, you will be asked for some certificates from a credit bureauthat will either increase or decrease your credibility.
What this means is that basically, the credit score is a reflection of how serious you are when it comes to making payments on time and will convince them if you’re worth a shot or not. In Kenya, you can get the loan approval if you have a good credit score. But how do you boost your credibility to make that happen? Here is some helpful information, as well as some tips on how to boost your credit score.
What Is a Credit Score?
A credit score is basically an indicator of how good you are at managing your credit. It is a report in numerical form that shows your creditworthiness. Usually, this information is obtained from a credit bureau and based on a credit report.
The score is often used as guidance for potential employers, as well as lenders you’re trying to obtain a loan from. As such, if your score is too low, you might not qualify for what you want to get. The higher the credit score, the better
What Are Kenya’s Major Credit Reference Bureaus?
When you want to see the situation of your credit rating to find out whether you must work to improve it, you need to know the available credit bureaus. That being said, Kenya has a few major ones, such as CreditInfo, Metropol and TransUnion.
How to Increase Your Credit Score?
Make Payments on Time
This should go without saying but being late on payments doesn’t work well if you want to have a good credit score and access to loans and other relevant stuff. When you have debt or didn’t make all your payments on time, this will appear on your credit score. However, if you try to pay everything on time, this will prove that you are a reliable customer and you’ll boost your credit score.
Still, be careful with the type of loan you’ve taken before. If you pay the whole loan before the end term, you might even face some penalties.
Maintain a Good Relationship with Your Lender
When you work with one lender, it’s essential to maintain a good relationship with him/her. This can easily be done through payments done on time, as well as staying with the lender for a longer time. Moreover, if you’re unable to make a repayment on time, communicating with the lender and letting them know this will show them you’re serious and don’t run away from your responsibilities.
Don’t Borrow Too Much
Anyone can reach a point in their life where an instant personal loan is a must. After all, things are unpredictable, and you might find yourself in a situation where you need urgent money.
Whereas getting one loan is alright, overdoing it can be detrimental for your credit score. Even if you take small loans and pay them back quickly, you might be giving red flags, especially since the loan records will stay on your report for some years.
Knowing the meaning of credibility and how to increase it will be helpful to you if you’re Kenyan and need loan approval. Follow the tips given to you in this article, and you should be able to get a good score and qualify for the jobs and loans you need.