At some point in your life, you may need to access a loan for a variety of reasons. While it is natural to have some reservations about using money that you will have to repay later on, smart use of loan instruments gives you even more economic power in the medium to long term. Each time you access a loan, and how efficiently you honour that loan will reflect in your credit score. A great credit score is not earned from never taking out a loan. In simplistic terms, your credit score is calculated based on how well you repay loans.
Your credit history can be accessed via a credit report. Every Jamaican over the age of 18 has the option to retrieve their credit report from the Consumer Bureau of Jamaica. There are 3 types of reports that are available including consumer credit reports, business credit reports and credit scores. Every individual is entitled to 1 free credit report per annum. For more information on your credit history visit the Consumer Bureau of Jamaica's Website
It is important that you keep abreast of your credit report. This is the first step in ensuring you are financially attractive to lending institutions. Additionally you will be able to identify any information that is potentially incorrect as this may negatively impact your overall score.
If you are a joint owner of a home or have any joint bank accounts with someone else. Be sure to point this out and unlink your credit report from anyone that may possibly jeopardize your credit rating.
Repay your credit cards monthly and on time. Ensure you are not accruing substantial interest that becomes increasingly more difficult to repay. If you find that you are unable to properly finance a credit card, seek an adjustment on your limit or close out any credit card(s) that you do not necessarily need. A credit card that is current and paid in a timely manner every month will go a long way to improve your overall credit rating.
Take out loans or credit instruments that you can manage. When making a decision to borrow, start small. Take out amounts you can repay in a short time frame based on your current income and monthly expenses. More unpaid loans result in a lower credit score.
Accessing a loan indicates to an institution that you are capable of making sound financial decisions and balancing your budgetary needs. Once you repay a loan within the prescribed period and continue to manage your credit report there is no reason you will not be attractive to lending institutions. Accessing and repaying short term loans will positively impact your overall credit rating and make it much easier to obtain long term loans in future. A person that has maintained a good credit report for their adult life is more likely to get better mortgage and business loan rates. Feel free to contact us if you would like to schedule a consultation or learn more about our loan options.
29 Upper Waterloo Road
Kingston 10, Jamaica W.I.
Mega Mart Locations