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.
