Use Credit Wisely

What do you need to know when Borrowing?
If you’re just starting out in your career, it is difficult for creditors to assess your financial health and approve your application. However, if you can’t borrow, you won’t have a chance to build a credit history. Tricky, right? Don’t worry. This situation usually resolves itself as you gain more career stability and higher income, which are viewed as your capability to pay.
Using a statistical program, your information is compared to the credit performance of consumers with similar profiles. Creditors use scoring models to award points for each factor that helps predict who is most likely to repay a debt. The total number of points is what’s known as a credit score. It helps predict how creditworthy you are, or how likely it is that you will repay a borrowings and make timely payments.
A good credit score increases your chances for future borrowing approval, qualify for better rates and get approved for higher limits.  It can help you save money and make your life easier in the long run.
When applying for credit or borrowing, take note of what banks assess about you and your credit experience: The number and types of accounts you have • Late payments • Collection actions • If you have applied for new credit recently • Outstanding debt • How long you've had existing accounts