It is important to know what credit providers consider
when assessing your application for a loan, so you understand what you
can do to improve your chances of a successful application.
Some of the factors considered are:
- Payment History
- Amounts Owed
- Length of Credit History
- New Credit (number of recently opened accounts, number of credit inquiries, etc)
- Types of Credit Used
Here are some basic tips to improve your chances:
- Pay your bills ON TIME.
- Keep balances low on "revolving credit" (i.e., credit cards).
- Pay off debt instead of moving it around. Paying off an amount that has been sent to a collection agency will not remove the collection action from your credit report, but it will mark it as paid.
- Do not close unused credit or store cards as a short-term strategy to raise your score.
- Do not open lines of credit that you don't need.
