Darn one credit card after another, to give them to anyone who wants it – this situation is gradually becoming a thing of the past. Such a conclusion can be made by looking at the actions of many banks in our country in relation to their borrowers in recent years. It is about tightening the requirements for Russians who want to take a loan.
Today, America is a trendsetter of financial fashion, and many tools and methods in our country appear some time after they appear overseas. This Monday, the Federal Reserve of America published data, getting acquainted with which, financiers believe that in the near future it will be more difficult for a potential borrower to get a credit card. For example, according to official data, more than 40% of US banks have worsened credit card terms when it comes to mortgage lending.
Bank is watching over your credit history score
In simple terms, these banks reduce the opportunity to get this service for people with a lower score in credit history. Such actions are a kind of reaction of creditors to the situation with the return of previously issued loans. This year in America, several financial experts are fixing close to record consumer debt and the number of credit card holders who are late in payments.
Although such changes cannot be called a seismic shift because more they resemble a return to the usual situation after several years of almost flawless credit management. Nevertheless, the changes are still significant. In these few years, many credit cards have been issued to people who have outstanding loans. Now banks are gradually ceasing to do so.
The main point of this article that a consumer needs to understand is that you need to carefully monitor your credit history and, if it is bad, try to improve it in order to increase your chances of getting a loan.
The main three rules that must be followed to improve your credit score:
1. Pay all your bills on time (preferably, not only loan payments).
2. Do not spend more than 30% of your total credit limit.
3. Do not apply too often for a loan or a loan.
Stick to these three tips for a while — lather, wash, and repeat — and your bad credit history will become good.
Do not forget about automatic payments, which, if properly configured, should help not to forget about any invoices and payments. As for the payment of loans, it is best to set up payments a little more than obligatory, otherwise you can pay the loan for a very long time, and you can’t close it.