Many people go to Nationwide Credit Clearing without having understanding the term of credit score and how it works. People who have been blacklisted will not be eligible to apply for a loan. Thus, only customers who fall into the excellent credit category will quickly obtain loans from banks or financial institutions. This is because loan performance is considered good, and credit risk is smaller than the other four credit scores. One short-term solution that can be done for those of you who have loan arrears is to pay off all arrears so that your credit score can change in the following month. This can be done by customers who are under Special Supervision Credit. So, start discipline to pay your loan bills to improve your credit score. After all, the longer you have overdue loans, the more interest you will be charged as a form of fines.

Restructuring your loan

It is undeniable that there are customers who cannot repay loans because they have been victims of fraud or have been affected by the disaster. Loan restructuring can be provided to customers who experience these conditions. If you have trouble repaying your loans due to the reasons previously mentioned, then contact the loan officer from the bank or institution where you took the loan. By restructuring the loan, the lender can create a new loan repayment scheme that suits your current financial condition. After your loan restructuring process is complete, then you only need to pay obligations according to the latest payment schedule

So, how to determine a reasonable loan?

It is common knowledge that the maximum installment amount is no more than 30% of income per month if you want to keep your financial condition healthy. So, avoid having installments of more than 30% because the creditor will consider you as a risky customer so that it will worsen your credit score. The bank or financial institution will assess you as a prospective borrower that is trusted and responsible when you focus on paying off arrears on loans before applying for a new loan. Your income is $500 per month. So, the maximum installment along with the interest to be paid per month, is $100. When you buy an iPhone $1200 with a repayment period of 12 months and an interest of 2.95% per month, then the total monthly installments you have to pay is $120. With examples like that, then your installments belong to healthy installment.

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