Improve Credit Score Quickly Through These Methods.

Credit scores are a measure of whether a loan is accepted or rejected. If the scores are good, the application is likely to be approved. Meanwhile, if it is bad, the opportunity for submission of approval is small.

The problem is what if the credit score is bad. Can the score be improved so that the submission application passes? Then what if the score can be improved?

These are the questions that have been raised by people whose loan applications have been turned down. They are confused about what to do when they find their application rejected because of a poor credit score.

Well, in order to answer these questions, GoodMoney has made a review.

1. Never be late paying installments

1. Never be late paying installments

Remember, the installment amount is 30 percent of the salary received (cubux)

Already it is the duty of every debtor to not be late in paying installments. In addition to avoiding late fees, the discipline of paying installments is good for credit scores.

This can be seen in IDD SLIK OJK. Just pay attention to the difference between the score that you get by never being late in paying installments and the score obtained due to late paying.

Debtors who are disciplined in paying installments can usually score 1, which means smooth. While debtors who are late in paying installments are given a score of 2, which means special attention because the payment is stuck. This is why debtors are always advised not to pay installments late.

Not too late paying installments is also a way that can be used to improve credit scores. However, the process is quite long, which is one year if you want to be really clean.

For example, you’re late paying in the third month. In the next month for the next 12 months, you have to pay installments less or on time. Thank God that the repayment tenor is 2 years. If it’s less than that, like it or not you have to take more installments so you can fix it.

2. Take advantage of credit cards

2. Take advantage of credit cards

Use a credit card, consider these things

Fortunately if you have a credit card. Because you can use it to improve your credit score.

Just so you know, using a credit card isn’t always as bad as some people think. Routine transactions with credit cards every month can keep a good score. In fact, it can encourage poor scores on your OJK SLIK iDeb list.

As stated above, it took about 12 months or a year for iDeb SLIK to be completely clean from bad scores. The trick is to pay installments on time for the next 12 months.

The most sensible way to continue to pay installments for the next 12 months is to always use credit card transactions every month. As long as the bills are always paid before or just past due, surely a bad score will disappear by itself.

3. Make sure there are no more payments that have not been paid

3. Make sure there are no more payments that have not been paid

Sometimes there are instances where credit scores are still poor, even though repayment payments are always carried out in a disciplined manner. This can happen because there are unpaid installments because they may forget or appear unknowingly.

If this happens to you, remember what installments you have to pay until they are paid off. It’s easier to see it on SLIK OJK. You can access it by making a request at the OJK Office.

In SLIK OJK, you can see what the payments are for you. If you find installments that you have never done such as credit card transactions, immediately report the matter to the bank concerned so that it is processed so that the credit score can be restored.

4. Continue to pay installments until the credit score is really clean

4. Continue to pay installments until the credit score is really clean

 Make sure there are no more installments that have not been paid.

Because it takes a year so that iDeb SLIK is really clean from a bad score, like it or not you have to continue to pay installments for one year. There are two options that can be done, namely take a new credit or credit card transactions.

In order for late payments or delinquent payments to occur, make sure bill payments do not exceed 30 percent of income. It is intended that you do not feel heavy in paying the installments. So the credit score remains safe and a bad score can be lost.

Now, that’s the way to improve credit scores. The point is that these methods produce successful results as long as they are actually done. 

Credit despite low income

Not everyone who does a regular job has a high income. There are many occupational groups in which only a low income is paid despite the minimum wage. Be it because the job cannot be operated full-time or because even the minimum wage does not generate a high income. It is a fact that every month millions of workers have to calculate very precisely how they can best manage their expenses and how additional purchases can be integrated most cheaply. Not an easy task to be mastered. However, a loan despite low income can take some financial pressure off and important new purchases can be financed.

When to talk about a low income

When to talk about a low income

As a rule, the banks and savings banks describe the income, which is below the attachment allowance, as low income. The seizure allowance for singles is currently 1,079.99 USD. This means that any USD earned below this limit cannot be seized. Anything above that can be attached. The garnishment-free allowance is always based on the marital status and the maintenance obligations of the person concerned. For married people with a dependent person, the allowance is, for example, 1,479.99 USD. With two persons subject to maintenance already at 1.709.99 USD.

If you have a low income as a borrower, it will be difficult to take out a loan. Because the banks always query the income when borrowing and check how much money could be attached in the event of a possible default. A loan despite low income is therefore only possible under very specific conditions.

The consumer loan as a loan despite low income

The consumer loan as a loan despite low income

The easiest way to take out a loan despite low income is to opt for a consumer loan. The advantage of consumer credit is that it does not regard income as security. Because the loan is earmarked, the financed things count as security.

The consumer loan is offered by retailers, but also directly by banks. However, it is common for the loan to be taken out directly from the dealer from whom the purchased items are to be financed. This is the easiest and the offers in this regard are usually quite good.

The loan despite the low income with guarantors

The loan despite the low income with guarantors

Another option for taking out a loan in spite of a very low income is the addition of a guarantor. A guarantor is a person who uses the good creditworthiness to secure the loan. In the event of default, the bank will always contact the guarantor to claim the debt. The guarantor is therefore fully liable for the loan despite low income and should therefore be selected very carefully.

It is important that the guarantor has a good income. It should be higher than the actual borrower in order to really meet the security that the income is supposed to bring. It is also important that the guarantor does not work independently or as a freelancer, but can demonstrate a permanent employment relationship. It has also proven to be very advantageous if the guarantor is very closely related to the borrower. The spouse, children or parents are therefore particularly suitable as guarantors.

Don’t go unprepared for borrowing

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If you are looking for a loan despite a very low income, you should expect from the outset that borrowing will not be easy. It is therefore important to prepare well for the application.

Anyone who carries out a comparison in advance knows, for example, where there are particularly cheap loan offers. In addition, it should then also be known which documents are required for the loan application. In addition to proof of income, this would also be an identity card or passport and the consent to query Credit Bureau, because without it there is no credit in Germany.