Before granting a loan, financial institutions must assess the applicant’s credit report. This is the only way to know if he is a good payer. As you will have understood, a bad file will therefore complicate your task when applying for a loan. And even if you do manage to land a loan, it can cost you dearly, with very high-interest rates. If you are facing a number of refusals, the best way out is to take out a loan without an investigation.
But this little file doesn’t just affect your loan application. It can also reduce your chances of buying a home since landlords often consult your records before entering into a lease.
Also, you might have a hard time getting a job. Indeed, depending on the position to be filled, some recruiters may ask to consult your credit report. And they can access it with your consent, of course.
How to take care of your file?
The credit file is a document that contains all the information about your financial situation: bank accounts, declaration of bankruptcy, unpaid debts that have been submitted to a collection agency, etc.
Given its importance, you must take great care of it. Here are some tips for applying:
- Check your file at least once a year. Make sure all the information there is correct and up to date. And if you find any errors, don’t hesitate to correct them.
- If you have taken out one or more loans, always meet your deadlines. And at the slightest financial problem, do not hesitate to contact your creditors to find a solution in order to keep your commitments.
- Multiplying credit products improve your rating but don’t overdo it. Also, make sure you can repay everything.
- Avoid applying for more than one loan at a time, as this will alert creditors and drop your score.
- As you can see, having a good credit history is not difficult. You just need to adopt the right reflexes on a daily basis.
Finally, a bad record prevents you from accessing certain telecommunications services. Not to mention that it can also increase your insurance premiums.