There is an old saying that goes, “failure to plan is planning to fail”, and as far as building a credit score is involved, it is mostly a matter of planning. In this modern day and age, attaining and maintaining a good credit rating plays an important part towards the attainment of financial, material, and educational goals. If you have yet to establish any kind of credit for your loans or credit cards, you should start planning now, so as to qualify for them in the future.
A credit score is more or less a financial record that most financial institutions will look at in order to determine how much risk you pose as a borrower; the higher the rating the lower the risk and the better your chances get. But since you may not have a credit for the moment, there are others factors that they will consider to determine the level of risk you pose.
These factors include:
· Your bank account history: Most lenders will check your bank account history, to determine your financial history. If you do not have a bank account, you should open one and ensure some level of activity in that account, so as to justify you as a worthwhile borrower.
· Your employment history: Lenders will also look at your employment history, to determine your ability to hold a job. The longer you maintain your job, the better your chances get.
· Utilities payments: If you do not already have any utilities under name, then you should seek to do so. Once you have done so you should ensure to meet those expenses in time. The better payment history, the higher your chances get.
· History of residence: Lenders will also look at how often you move, or whether you rent or own your house. Maintaining a consistent home address will boost your chance at approval. Owning your own house also improves your chances at approval.
Tips and comments:
The first and most important step towards building credit without a credit score is to establish a relationship with your prospective lender. The best way to do this is to open and maintain an account with them. You should also find out what other additional criteria they may have in order to qualify for the type of credit facilities you are after.
