Creditworthiness- Examples of How to Maintain

 

Creditworthiness-examples-of-how-to-maintain

Creditworthiness reflects a person’s or entity’s ability to pay a debt back. It is a way of assessing the level of risk that an individual or business presents to a credit provider. It also indicates how much they can afford to repay.

For Lindi, maintaining her creditworthiness offers a way for her to access the finance she needs. She needs to become familiar with how to do this in the most efficient ways possible.

She needs to know that with low levels, she will be regarded as a high risk applicant, effectively reducing her chances of qualifying.

How to maintain creditworthiness:

Think of what lenders desire when deciding on who deserves the credit they have available. At the most basic level, they are looking for the least chance of losing money. Lindi needs to behave in ways that make it almost impossible for her to lower her creditworthiness. She should do this by paying what she owes on time and avoiding skipping any payments she does have.

If she has any credit cards, she needs to keep up with repayments. This way she is considered more reliable.

By applying for a credit card or store account and ensuring that you pay it off on time, you can start to steadily build yourself creditworthiness.

Lindi should consider that there are other influences, such as the

debts you are paying off, how much income she has, her age and expenses she is paying.

If you are too young to have debt, then chances are that you aren’t creditworthy.

Lindi’s level of income is also a factor, because if she has income that is too low, her ability to repay debts is diminished. If you have too many debts to your name, this may affect your creditworthiness negatively.

Ultimately, Lindi should take it upon herself to become informed about how to lower her risk level, while being able to prove her affordability and reliability to credit providers.

 

Categories: Finance

Write a Comment

Your e-mail address will not be published.
Required fields are marked*

one × 5 =