subject: How To Borrow Without Affecting Your Credit Score [print this page] Credit scores have become so important in our lives at the moment that your score has become a direct reflection of your financial well being. If you have a high score then you will have lenders fighting over themselves to cater to your every requirement and at the same time, just in case you have a poor credit score lenders wont even want to meet with you. You become pre-approved or pre-denied for several types of loans purely depending upon your credit score.
That is the reason why all individuals and families are quite concerned about the impact on their overall credit history when they apply for any kind of loan. What anyone who wants to apply for a loan should remember is that the number of loans or frequency of loans you apply for does not affect your credit score. It is how you repay or your repayment habits what really affects your credit score or history. The idea of borrowing should always be how to borrow without affecting your credit score.
First thing you need to keep in mind is that if you meet your monthly repayment obligations, then you will have a high score. Whatever maybe the terms and conditions of the specific loan you have applied for, as long as you repay on time, your score will always be high. Of course a high score would mean you could borrow again without any difficulties whatsoever. Hence the primary way of maintaining a high credit score is to borrow only that amount which you know you will be able to repay on time.
Of course it is not always possible to meet with each and every payment. There could be unforeseen circumstances due to which you may fall behind in your payments. Obviously once you fall behind, your credit score will immediately take a hit. It will keep going down as long as you keep defaulting or delaying payments. If your lender has to come after you after repeated warnings, your credit score will be as good as non-existent. In such situations, what you should do is apply for a small short-term loan which will allow you to pay any immediately loan repayment obligations. Loans such as payday loans or auto title loans can be taken anytime and those types of lenders are not bothered with your credit score or your existing loan commitments. You can use these short-term loans to ensure you never fall behind in your payments if you have any kind of home loan, personal loan or even a business loan. As long as you dont fall behind in your payments, your credit score will always be quite high and you can borrow as many times as you want.
