What are credit scores?

Credit scores are a rating system implemented by banks to see your eligibility or ability as a potential debtor for a proposed loan. It can also access various other loan facilities. Credit scores are indicated by numbers 300 to 850. If your credit score is above 720, then it is in good or safe criteria. However, if it is below 640, that will become the bank’s attention. Maybe you will have difficulty getting a new loan. The bank also does not want to carelessly accept new loan applications for customers who have bad credit scores.

If you do a wrong step, there is even bad credit. Moreover, the proposed credit value is greater than the previous loan. Therefore, the bank will certainly explore and assess how you are responsible for loans or credit so far. Among other payment discipline, the remaining debt, the ability to pay, including your financial ability to bear new debt.

In addition, the credit score will also affect the amount of the limit or the number of loans you will get. If during this time you are lack discipline in paying credit installments and are often subject to fines, the bank may only provide loans with a value smaller than the submission.