Making a loan application is among the factors affecting the credit score. The question of whether applying for a loan asked by the borrowers lowers the credit score can be answered in some cases. Because when people who have low scores in Good Finance data apply for a loan, the existing credit points decrease.
However, this situation is of course based on certain criteria. The credit score continues to increase in cases where people who have sufficient points to get credit to apply for the loan and the payments are made regularly. However, when people who are below the level that should have a credit score make a loan application, the loan application is rejected and this reflects on the Good Finance score, causing the current score to decrease.
Things to do before the loan application
The application process is one of the most recent stages in loan purchases. Learning to find the Good Finance score before applying for a loan is among the procedures to be done before getting a loan. Banks that approve loan applications for individuals with a Good Finance score of 1400 and above, and automatically reject loan applications for people who are below 900. Credit scores are dropped because people in this situation are automatically rejected when they apply.
How to Increase Credit Score?
People who want to increase their credit score first take the first step to increase their credit points to the desired level by starting to pay them and making regular payments from the beginning. On the other hand, transactions such as regular credit card usage, regular payments and timely payment of borrowings are among the reasons that increase credit Good Finance points.
Credit Score Despite Ratings
After the credit score approval process takes place, it tends to drop first. The only reason for this is that the borrower has a debt that he must now pay. However, when borrowers pay their debts regularly, this situation is reversed and credit points start to increase above their current points. Those who do not want their credit points to fall should pay regularly.
Those who want to achieve very good scores on credit and do not want to have problems with the use of credit should pay their credit card or prepaid credit payments regularly without paying time. On the other hand, information such as business information and regular working hours are among the factors that directly affect the credit score.
People who fall to 900 points or below, that is, the black lists of banks, should take a few steps to get out of this situation. In order to get out of the black list in the fastest way, the bank customers who need to pay the current unpaid and overdue debts, on the other hand, will continue to use the credit card they use regularly, and pay their bills by credit card will also increase the credit score and help to get out of the black list faster.
At the same time, it is among the factors that make a loan application to the same or more than one bank at short intervals, which are among the mistakes made by blacklisted persons and decrease the credit score. For this reason, people who do not want to drop their credit points and want to get out of the black list can increase their credit points by using their existing credit cards instead of applying for loans and making regular monthly payments. Because borrowing with a credit card also means getting a loan, Good Finance scores are getting old quickly with regular payments to the credit card.