Maybe you often hear about the term credit score in the financial world. However, did you find out about the term, including the reasons and how to improve it? Because, although its existence is not too considered, it turns out that credit score is enough to affect your financial journey. There are no creditors who want to be harmed by the debtor for reasons of not being able to pay back the money lent. As has been said before; the higher the credit score, the more likely a person is to repay a debt to creditors. Conversely, the lower the credit score, the more it is considered risky.
Then, what’s in it and how important is it to have a high credit score for you (as a debtor)? Having a high credit score will certainly benefit you a lot. In addition to being able to minimize loan interest, you will also find it easy to process when you apply for an automatic loan or other types of loans. That happens because you are considered eligible and are believed to have a good credit history by the bank or lender concerned.
After knowing what a credit score is, surely you will not stand by and look for ways to increase your credit score reputation. Each bank or fintech company has a different method of calculation and analysis. In addition to seeing the quantity, they will also see in terms of quality. Who would have thought that the intensity of using a credit card could affect the reputation of your credit score? If you never use it, then there will be no data recorded there. Therefore, for those of you who have not used or even do not have a credit card, immediately make it and use it regularly. Not having a credit card can be the most fatal mistake that can worsen your credit score. The history of activities recorded on your credit card will affect your loans and future payments.