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alexei
Apprentice
Joined: 16 Aug 2005
Posts: 3
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 Posted: 01/30/08 - 11:03 Post subject: |
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I had negotiated with a couple of banks about getting a loan. My credit score is not very good but not bad either. There was a misunderstanding once, and that reflected on a credit score. Anyway, how are credit scores important for getting a loan? How to improve it? I need some more advice on credit scores, looks like I don't know enough.
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nikki
Apprentice
Joined: 09 Oct 2004
Posts: 4
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| Posted: 02/29/08 - 00:24 Post subject: |
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| Every investment, loan and other financial actions are creating your credit file. And then credit file determines your credit score. It's like a financial statistics of an individual used when you want to get a loan for example, like you. Loan lender will determine your ability to repay a loan by your credit score. They make an offer which contains interest rate, sum limit and loan term by finding out your finances in the past. If you represent low risk you will get an offer with better loan conditions, but if your credit loan is poor conditions will be too, or maybe you won't get any offer. They are trying to avoid bad debt, which means that they don't want you to stop paying. That's why your credit score is important. Lenders have different methods of calculating your score but when you apply for a loan they don't have to explain it. Those methods are all similar, and they are created to define what would cause a bad debt. Though, they have obligation to explain why you are rejected, if you are rejected. |
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