Sad but true. Most financial agencies are biased when it comes to ratings. It is business. They cannot transact with someone they know cannot afford what they are selling or who cannot afford to pay their dues.
Some people might disagree but everyone is entitled to their opinion. Financial obligations are Obligations. And whether you like it or not, you have to pay your dues. When you apply for a loan and the bank sees that your financial rating is awfully low, they will think you cannot pay your loan or would not afford to pay your loan on time and more likely to be rejected. Bias? Yes they are. Unfair? I do not think so.
If I were to ask you, will you loan someone you know could not pay you? You would be hesitant, right? Same applies to the banks and other financial institutions. Why would they loan money to someone they know would not pay?
So, if you want to raise your credit rating or your financial rating, spend wisely. It is a cliche but it is a very wise rule: do not spend more than you could afford. Or better yet, live within your means.
Here are some ways to raise your ratings:
– You may start with paying your dues. Try to lower your credit card debt. You may not aware but every merchant would like to know if you can pay or not. You would not want to have so many outstanding balances.
– Once you have paid your credits or at least most of it, get a credit card that has the lowest interest. That way, you will not get overwhelmed with interest payments just in case you have forgotten to pay your dues again.
– Much better if you have credit payments automatic. Some credit card dues are automatically deducted to your salary. You can negotiate with the credit card company to just take out a certain percentage of your debt out of your principal or program your bank to deduct a fixed amount for credit card payments.
– Pay cash. If it is all possible, pay with cash, not with credit card. You may also find that some stores give major discount if you pay cash.
– I am not saying to discard credit cards altogether. Just keep your credit card to a minimum and preferably, only for emergencies.
– Monitor your checks and cash payments. It could be tiring but it will all be worth it.
– Follow your budget. Stick to it. Do not go overboard.
– Invest, as much as possible, try.
Follow these simple tips and you will see eventually, you will not need loans. Raising your financial ratings will definitely make you creditworthy and financially wise.