31 Jan Understanding the Basics of “Credit Score”: What it is and How to Improve it
Your credit score is an evaluation of how well you’re able to handle your money, and pay off loans. That’s why it plays an important role in shaping your finances!
When you apply for a loan to build your home, buy your dream car, or make your business grow, it will play a role in your application’s approval. Here’s why!
Benefits of having a good credit score
- Easier Loan Approval: Your chances of getting approved are better when your credit score is higher because lenders see that you have proven yourself capable of paying back money.
- Lower Interest Rates: If you have a high credit score, you have a chance of getting lower interest rates. This means that you may eventually save more money, and pay less.
- Higher Loanable Amount: When you have a good track record, lenders feel that they can trust you. Hence, they will eventually allow you to loan larger amounts of money.
How to Improve Your Credit Score
- Pay Your Bills on Time: Your credit score is greatly influenced by timely payments because it shows how you’re able to meet payment deadlines.
- Lower Credit Card Balances: Try to maintain a minimal credit card balance. Excessive amounts in comparison to your credit limit can lower your score.
- Diversify Your Credit Types: A variety of credit, including installment loans and credit cards, might raise your credit score.
- Refrain from Opening Too Many Accounts: Opening a lot of new accounts quickly could be viewed as suspiscious. Create new accounts only when required.
Keep in mind that building a good credit score takes time, so be consistent, and make sure to read and understand the terms and conditions of your repayment schedules and loan applications.
At SB Finance, we aspire to be the launchpad for your dreams, providing caring and responsible assistance when you need it most. We’re also registered with the Securities and Exchange Commission (SEC), and supervised by the Bangko Sentral ng Pilipinas (BSP), so we ensure to give you:
- Fair Interest Rates: No excessive repayments, just reasonable rates
- Guidance in Every Step: Dedicated customer service
- Legal Protection: Your rights as a borrower are safeguarded by the law
- Dependable Support: Legit loan services that are helpful, especially during financial emergencies
If you need help with your loan application, reach us via email (email@example.com), our Customer Service hotline at (+632) 8887-9188, or Facebook Page (@SBFinancePH).
If you want an SB Finance Goal Consultant to guide you toward achieving your financial goal, simply answer this form, and we’ll be sure to reach out to you!
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- Meta description: Your credit score is an evaluation of how well you’re able to handle your money, and pay off loans. That’s why it plays an important role in shaping your finances! In this article, we’re breaking down why your credit score is important and how you can improve it.