How You Can Improve Your Credit Rating?

How to improve your credit rating?


Banks make decisions on loan applications based on the borrower’s credit rating. The better the borrower’s reputation, the higher the likelihood of approval, the lower the interest rate. Several factors affect your credit rating. The most important of them is credit history. We will tell you how to improve your credit rating quickly and become a reliable client for banks.


What influences the credit rating of the borrower?

The formula for calculating the credit rating is not publicly available. Firstly, each bank, MFI, or CHB has its own settlement scheme. Secondly, lenders keep the calculation secret in order to protect themselves from data fraud, from drawing up a portrait of the ideal borrower.


It is reliably known that the following factors affect the reputation of a borrower:


  • the presence or absence of valid delays;
  • the presence of closed delinquencies in the credit history;
  • the number of simultaneously opened loans;
  • availability of open microloans in MFOs;
  • the total amount of payments under loan agreements;
  • the frequency of loan requests;
  • the frequency of obtaining new loans;
  • the number of refusals for sent requests.

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Banks and MFOs carry out a scoring analysis of the client’s questionnaire to assess possible risks. Based on the results of the scoring and the above indicators, the client’s reputation is formed.


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The more credit products were issued and repaid on time, the higher the rating.


How to quickly increase your rating and improve your reputation?

A person’s credit rating depends on his credit history as well as income level. You can increase the scoring score if you improve your credit history and prove your solvency. To do this, you can use one of several options.

Get a microloan

Contacting an MFI is the fastest way to increase your credit rating. Many MFIs offer interest-free loans to new clients. By taking out several loans in different organizations, you can improve your reputation without overpaying for loans. The standard rate for microloans is quite high – the MFO charges up to 1% of the debt amount per day.

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Important! To quickly improve your reputation, quick loans for 30 days are suitable. Such microloans are approved by almost everyone. Even people with a bad reputation, who are refused by all banks.


How to improve your credit rating with microloans:


  • Find an MFI with suitable loan conditions.
  • Fill out an online application on the website of the selected organization.
  • Wait for an answer, which will come within 5 minutes.
  • Upon approval of the application, sign the contract electronically.
  • Get money for a bank card.
  • Repay the microloan on time with one transfer to the MFO account.
  • When the credit history is not badly damaged, one microloan will be enough. For example, if there is only one delay of up to 90 days. But the more missed payments accumulated in history, the more efforts need to be made to fix it.

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Get a credit card

If the customer’s credit history is not badly damaged, the bank can approve the application for a credit card. Open delays up to 30 days or closed delays up to 90 days are considered non-critical. 

How to raise your credit rating using a bank card:


  • Select several credit cards and submit applications to agree to the offer with the most favorable terms.
  • Sign an agreement and pick up a credit card at the bank’s office, or in-person with a courier.
  • Activate the received card and pay for the purchase within the limit.
  • Make payments to your credit account without delays.
  • Use your credit card actively, make payments on time. And in six months it will be possible to ask for an increase in the limit or for a consumer loan. Sometimes banks make such offers first if the borrower is recognized as trustworthy.

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Arrange the purchase of goods on credit

To improve your reputation, you can purchase goods on credit or in installments. There are credit departments in many stores of electronics, household appliances, furniture, fur products, etc.


Do not choose expensive goods for a loan if you have a damaged reputation. The bank will not approve an application for a large amount. Buy small equipment, banks approve such applications most often.


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How to raise your credit score at checkout:


  • Choose a merchant that cooperates with several banks. The more applications are sent, the higher the likelihood of a positive response.
  • Wait 10-15 minutes for the system to make a decision on the application. After the approval of the application, sign the loan agreement.
  • Follow the established payment schedule.
  • Upon approval of the loan, the bank may change the conditions specified in the application. For example, increase the loan term from 6 to 8 months. This happens if the algorithm thinks that the client’s income is not enough to make a large monthly payment.

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To improve your credit rating, do not abandon the new terms. Pay off your loan on schedule. If you pay off the debt without delays, the lender can offer another product on favorable terms.


The incorporation of the BIN helps the trader and installment network rapidly recognize all the critical data from the card, for example, the bank that gave the card, including the location and telephone number of the bank. It likewise recognizes the nation of the beginning of the bank and checks the location data of the cardholder. 


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The BIN permits vendors to acknowledge various kinds of installments and velocities in the preparation of electronic exchanges. By using an online bin code checker, you can identify your bin number in an easy way.