Why is your credit history so important?
Our credit history has entered our lives as a factor in every transaction with the bank. by consumers in Turkey it is not yet what it is, exactly how it should be managed in consideration of credit history should not be forgotten that it is not known to be a factor. So what makes your credit history so important?
Scoring Your Credit History
Credit transactions you have made in the past and your relations with banks are now scored in the Credit Registration Office. This scoring system gives banks some ideas about you. Whether you can use credit or whether you are a reliable customer is determined by this score.
For example, the history of your follow-up and credit cards that you can’t pay indicates that your history is negative and you have a low credit score. When you apply for credit to the bank, the bank may not give you a positive return because your checked score appears low.
The whole cause is the negativity you’ve had in your past. Just like these negativities, your regular payments cause your score to increase. Now that you know that your past credit movements have turned into a score, don’t forget to plan accordingly.
Banks Review Your Credit Rating
KKB’s credit rating is a powerful “decision support product olan developed as a result of very detailed statistical studies. Foresees the possibility of paying the loans to be received by individuals based on past credit usage and payment behaviors. In this way, credit institutions can minimize losses by making more accurate decisions thanks to the KKB Credit Rating. Likewise, they are able to reduce operational costs by increasing the automation rate in the decision-making process, thereby increasing their profitability.
Approving Your Credit Depending on Your Score
Each bank’s credit rating system is different. Therefore, one bank can approve the loan for the same credit score and another bank can reject it. Likewise, for banks with a credit score that is normally too risky to give credit, some banks may show flexibility. There are, of course, several ways for the applicant to help banks to demonstrate this flexibility:
-Explain the reason of this situation in the past
– To be from certain occupational groups
To reduce the risk in the eyes of the bank by choosing one of the following ways:
1.The guarantor to show
2. Offering additional collateral
3. Increase the down payment rate
Your credit score reveals your entire credit history with banks. Your credit applications may not be approved due to poor credit history. You can find out the reasons why your applications are not approved by writing Neden Why is your loan not approved? ”.
Improve Your Credit Score
If your credit score now plays a key role in all your bank transactions and credit transactions, all you have to do is keep it high. So how do you increase your credit score?