A credit score is often confused with a credit history. These are different things: a story is a complete record of a person’s behaviour during the performance of obligations, and a rating is a score that evaluates his reliability as a borrower. A credit score is often confused with a credit history. The personal credit rating is calculated based on the CI and takes into account all records and criteria, from the age of the history to the debt load of the borrower. That is, this is a kind of Bad credit loans guaranteed approval online assessment that helps banks decide on what conditions to give a person a loan. If the score is high, you can qualify for a lower percentage and a higher amount. And with an extremely low score, banks, unfortunately, may refuse to issue a loan at all. It is important to know how to increase your credit rating and how it is calculated in principle.
Delays, especially outstanding ones, are a serious blow to the credit rating and credit history. Their presence can tell the bank that a person is not very reliable, and it is risky to give him a loan. Therefore, before taking on new obligations, it is recommended to check for delinquencies on old ones and, if any, immediately repay them. The absence of overdue payments, on the contrary, increases the rating, as it speaks of responsibility and reliability.
Lack of credit is if a person has never taken loans and loans, no one can predict what kind of borrower he will be. Banks regard a zero credit history as a risk factor: they do not know what to expect from a person. Therefore, people with zero CI prefer not to issue low-interest loans, and often require additional confirmation of reliability.