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4 Simple Ways To Improve Your Credit Score and Increase Your Chances of Getting Higher Loan Limits.

Photo: Financial Times

Have you ever wondered why you don't get higher loans from your bank or other online lenders? Most lending platforms require that you keep saving for a certain period of time in order to increase your loan limit amount.

Most people in our country use Mpesa service in their phones to make transactions and this service offers lending services through KCB Mpesa, Fuliza and Mshwari. If you stick to certain rules you might get your loan limit getting more higher.

However there are many things you need to consider in order to increase your credit score. Here is a list of ways to improve your credit rating according to

1. Pay Your Bills on Time.

If you find it difficult to pay your bills in full at once, it better to pay in bits than failing to pay at all. If you postpone paying your credit on time, your credit rank will be lowered. This might lead to denial of loans in the long run. Remember that your credit score is what determines the amount of loans you will be awarded in any lending platform.

2. Maintain Older Accounts and Don't Deactivate Them.

If you borrow a loan in an account several times and pay it on time, it will result to a credit history which is good. This credit history is the reference point if you will need to borrow again from the same lender. If you delete your account, your credit history will also be deleted and deny you a chance to borrow again.

3. Avoid Bad Forms of Credit at All Cost.

Some companies or retailers offer discounts to customers so that they open credit card accounts with them. This is a form of enticement which most people don't know. Avoid getting into this bait at all cost. The reason is because some credit forms are ranked more favorable than others. For example, the presence of a mortgage loan on your credit card will increase your score but the presence of many consumer cards can hurt it.

Use one major credit cards like Mastercard, Visa and American Express to avoid too many unnecessary credit cards.

4. Use Credit Cards Only When Necessary.

Have you ever seen those text messages from banks or lenders telling you that you qualify for certain loans? Those are just meant to entice you into accepting the loan offers. Do not take loans just because you happen to qualify for one. Taking unnecessary loans will lower your credit score. Only apply for credit when necessary.

Thank you for reading this article. I hope it helps you.

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Financial Times Fuliza Mpesa Mshwari Tim


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