Thu, 02/13/2025

Avoid Rejection! Effective Ways to Improve Your Credit Score, Jakarta, Indonesia

Before applying for a loan, it is essential to understand and improve your credit score to increase the chances of approval. Credit scores allow lenders to conduct a thorough credit assessment to determine how well or poorly a borrower has managed credit before providing financing. A high credit score enables borrowers to secure loans with lower interest rates, whereas a low credit score makes it more challenging to obtain a loan, as the borrower is considered high risk.

The first step in improving your credit score is evaluating your credit report using a soft inquiry to identify any negative credit history that may impact your score. This process usually takes one to three hours. Avoid frequent hard inquiries, as they can negatively affect your credit score. Financial authorities may interpret multiple hard inquiries as a sign of financial distress, increasing the perception of risk. Next, manage your bill payments to avoid late payments. A simple way to ensure timely payments is by setting up due date reminders or enabling auto-debit from your bank account.