Credit Score: Few Common Mistake That Leads To Bank Rejecting Your Loan

Credit Score: Few Common Mistake That Leads To Bank Rejecting Your Loan

Our credit score, which is the indicators used by banks to determine what is your level of credit health when it comes to applying any sort of loan. Which it is usually measured by a credit score, a 3 digit number which are measured by higher score will means a good credit health while a lower score will in results of bad credit score which will usually be receiving bank rejection on approving your loans.

Here are some of the mistake which will leads to your loan getting rejected:

1. Late or missed out monthly payment, because 45% of your credit score is based on payment history.
2. Applying too much of credit card in same time, which will hurt your chances of getting approved and you should just apply 1-2 credit card based on your requirement and needs.
3. Used up all your credit card balance which will in result of lower credit score. (Where this will utilise the 20% of your credit score).
4. Closing credit card account due to maxing out the credit card, which will erase all your good credit history and if you were managing your account well back, it will helps on your scores more.
5. Don’t have any credit lines, which is a misconception when it comes to credit health as banks has no credit history on your analysis therefore, your credit score will be lower.
6. Not monitoring your personal credit report yearly, where it will affect your credit score in long run such as miss out payments and amended back the miss out payment.

Text sign showing What S Your Score Question. Business photo text Tell Personal Individual Rating Average Results Statistics Scribbled and crumbling sheet with paper clips placed on the wooden table

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Credit Card.