Do you want to get a big long-term loan? So don’t miss the opportunity to prepare your credit history for it! The bank will not entrust a large amount to a person without loan servicing experience. Such a person can be unorganized in financial matters and bring only losses to the bank. However, if the credit bureaus have entries that you know how to use loans, your rating will go up. This doesn’t mean that you need to borrow money unnecessarily. But when additional funds are still needed, do not be afraid to apply for them as small periodic loans will increase your chances of receiving a large amount.
Why not to start by taking a loan on a card? We will tell you how the use of microloans is beneficial for credit history.
How to increase the rating of the borrower with the help of "credit cards"?
Remember the situations when there was not enough money for something and because of this you had to postpone a profitable purchase, an important trip or a meeting until salary. Why didn’t not use you "credit card" received with the salary card? You didn’t use it, because you were afraid to admit a delay on it, which would lead to the refusal of a large loan in the future. But postponing such practice, you leave your credit history empty and it will be difficult for the bank to assess your financial discipline and solvency and entrust you with a larger amount.
Small periodic loans could increase the confidence of the bank. For example, using credit cards profitably, you need to follow a few rules:
- choose a profitable card - with a preferential (free) period, a good interest rate, bonuses (in the form of cashback, discounts for using the card for payments, etc.);
- try to return the money before the end of the grace period , in such a way you will not have to pay interest;
- use the card no more than once every 2-3 months . So that the bank sees that you rarely experience material difficulties;
- always keep a part of the amount on the card, otherwise you might get the impression that you are not able to plan spending;
- don’t withdraw money from a card through an ATM as usually banks set a large commission for this;
- don’t allow delays.
Having thoroughly approached the choice of a card and clearly fulfilling its financial obligations, you will demonstrate to the bank its solvency and responsibility.
Online loan is another handy tool for raising borrower rating. They can be taken at points of sale or on the Internet. The first ones are most often located in places of large crowds of people - near transport interchanges, shopping centers, and markets. Their signs speak for themselves: “Fast money”, “Money before paycheck”, “Money in 20 minutes”, etc. Internet services can be easily found in the online search engine through the request “online loan”.
They are available to almost all able-bodied population, including the unemployed, students, retirees. The main requirement for the borrower is to be an adult citizen.
To borrow money through the Internet, you need to fill out an application, pick up a few advantageous loan offers and answer questions from the questionnaire of these lenders. You will get money in half an hour. The Internet is still easier and faster, because the loan can be issued from home.
For example, in order to borrow money in the Cashcat service, you need to spend 1 minute on the selection of a loan. You will not be called and asked questions, you don’t have to meet with service representatives to sign the contract. All contacts occur via the Internet, in a convenient place for you and at any time of the day. Amount of money comes to the card from your chosen lender.
Financial companies, like banks, regularly report to credit bureaus on how their clients repay loans. If you return the loan on time, your borrower rating will gradually increase.