How to strengthen your financial fitness by improving your credit score

MOST people who work on their physical fitness want to get stronger and lose some weight. Financial fitness works in much the same way, especially when it comes to your credit score. A good credit score puts you in a strong position when you want to apply for credit, and it will also ‘thin down’ the stress that goes with applying for a loan. Here's why:

- NASIA SEYUBA

A good credit score tells potential lenders that you are low-risk. It shows that you are not already struggling to pay back too much debt and that you make complete and timely payments every month.

This makes it more likely that your application will be approved, and you may qualify to borrow higher amounts at lower interest rates, with easier payment terms. Having a low credit score means that applications to responsible lenders may be rejected.

Registered lenders comply with all the laws governing how much credit you can take on and what the terms of this credit should be.