Credit score affects your financial life significantly as it plays a key role in a lender’s decision to offer you credit. A credit score of 500 and below is considered poor and this results to financial institutions declining you loan request. Below are some ways to improve your credit score:

1. -Paying your loans on time: consistently making credit card and loan payments on time is one of the biggest factors of your credit score. Set up reminders on your phone or email so you don’t miss a payment. Six months of on-time payments are required to see a noticeable difference in your score.
Secondly, you can cover your payments on time by changing the dates your payments are due. Set up your payment schedule based on when you get paid. Consistent and timely payments have a big impact and will greatly improve your credit score over time.

2.Increase your credit line: If you have credit card accounts, call and inquire about a credit increase. If your account is in good standing, you should be granted an increase in your credit limit. However, it is important not to spend this amount so that you maintain a lower credit utilization rate.

3.Work with one of the best credit repair companies: If you don’t have the time to improve your credit score, credit repair companies will negotiate with your creditors and the three credit agencies on your behalf, in exchange for a monthly fee. Additionally, given the number of opportunities that a great credit score provides, it could be worthwhile to utilize one of the best credit monitoring services to keep your information secure. Dispute Wrong Information on Your Credit Report. There are several Kenyan individuals offering these services on freelance basis on upwork

If you check your credit report and notice that there’s wrong information, take action to resolve it. Dispute any errors promptly. Consistent credit fix reviews will improve your credit score as well as develop the habit of staying on top of any inconsistencies.

4. Don’t close a credit card/ loan account: Once you pay off a loan or if you are not using a certain credit card, you may be tempted to close the account. However, in order to keep your credit score higher, you should actually keep the credit card open.

5. Pay Off Owed Money
The amount of credit you have versus the amount of credit you’re using is a factor in your credit score. Stop borrowing money and pay off what’s already owed. This is one of the best ways to relieve stress and improve your credit score fast.

Your credit score is one number that can cost or save you a lot of money in your lifetime. An excellent score can land you lower interest rates, meaning that you will pay less for any line of credit you take out. But it’s up to you, the borrower, to make sure that your credit remains strong so you can have access to more opportunities to borrow if you need to.

At Bidii Credit we have personal credit managers who will be at your disposal to give you FREE advise on your credit before you take a loan. You can call us any time for a loan review or as for a callback by visiting us on https://www.bidiicreditkenya.co.ke/contact-us 

The post How to improve your credit score with financial institutions. appeared first on Bidii Credit Limited.

Blogging is a startup business that can be extremely profitable. Over the last few decades, companies in Kenya are in a hunt for bloggers who help them to create a web-based platform for their business and reach to a global audience through the means of online posts and contents. In this era of the digital age, blogging has evolved to become the backbone for successful businesses and bloggers are looked upon as online influencers.

If you have the keenness to write, a quest for reading and a dedication to never give up, you have the perfect ingredients to become a good blogger.

With great bloggers in Kenya to get inspiration from e.g. This is ES, Under-25 etc., there are countless free blogging guides available online, to help beginners create impactful blogs. With a Ksh.1500 initial cost of investing in a hosting space and domain name, you are geared up to succeed in one of the most lucrative business ideas in Kenya.

Fruits and Juice Kiosk

The working class crowd in Kenya is becoming more conscious of what they eat and drink. Staying fit and healthy is a top priority- given most of them stay at their desks 8am-5pm, has now and this turned the idea of opening a fruit juice kiosk into one of the most successful business ideas in Kenya. Nothing can be more refreshing than a glass of fresh fruit juice on a sultry afternoon.

Tuition and Coaching Centers

This is another lucrative business option for those with capital constraints. Tuitions classes or coaching centers can begin from your home, eliminating the need for any rented space. The classes can be taken individually or in larger groups. With a strong knowledge in the field, you excel will help to spread your popularity by word-of-mouth.  Slowly, as the business grows you can hire professionals in other field and start working from a rented place. In the event you lack space at your home, you can also do this online!

DIY Home Decor & Crafts Business

Ever paid attention to Art and Craft sessions at school? Well, if you did and are creative enough to turn junk into marvelous art pieces, then this won’t cost you more than few pennies. And to the world around, they sell like hot cakes for home decor purposes and landscaping.

DIY Studio in Valley Arcade was doing very successful with his DIY skills up until she decided she was going to close shop. and she will definitely tell you she didn’t break the bank to start this business.

Handicrafts Seller

The Government of Kenya through Magical Kenya has started promoting the sale of handicraft products in numerous cities and states. Some of these products include beaded ornaments, metal ware, paintings, shawls, carpets, wood ware, earthenware, embroidered goods, bronze and marble sculptures, etc.

May sellers on Maasai market (who design their own products) will tell you they started with very little capital. Many beaded ornaments on JIJI currently retail from between 200 to 1500 a piece. Meaning with 5000 you can have a good number of ornaments for resell. And even better number of these items if you decided to do it yourself by following several DIY channels out there.

NOW WHAT

So now that you have all these business ideas at your disposal, the next biq question would be, how can I get some cash to try out these ideas? Well, there are several financial institutions that could offer you cash in terms of capital. Our advise is that you also do your due diligence before you try getting these funds. Bidii Credit for example has a fully-fledged business consultancy team that can advise you. We also have a wide range of products that could suit most of these ideas. Most of these products can be accessed in less than 6 hours! So you come to us with your idea and walk out with up to 5million in cash! How about that?

The post Top 10 Small Business Ideas to Start in Kenya- Part 2 appeared first on Bidii Credit Limited.

There are some common mistakes people make which we will address in this article hence leaving you better informed and more confident about loan applications.

Not Checking Your Credit Score

The approval of your loan application depends on your credit score. Before applying for any loan, the first step should always be to check your credit score.

This number is based on your credit history and current debt levels, and it gives a lender an idea of how trustworthy you are as a borrower. A low credit score denies you the chance to get a good interest rate and can lead to your loan application being rejected.

You can access your credit score from credit reporting companies such as Transunion. All you need to do is download the TransUnion Nipashe app on the Google Play Store, pay a registration fee and then request your credit status.

If your credit score is low, you should consider paying off your outstanding bills, pay down your debts and make sure you’re paying your existing bills on time.

This will improve the number hence setting you up to qualify for a better interest rate, which will save you money. Paying down existing debt will also help you to better afford the payments on a new loan.

Pro Tip: If your credit score is low, you can read on how to improve your credit score

Making Multiple Loan Inquiries

Each time you seek a loan from a lender, a query is raised, and it appears on your credit report along with the date. With each query, your credit score reduces.

When multiple queries are raised in a short span of time, you are considered as ‘credit hungry’. A Lender views this as a sign of high credit risk which reduces the chances of your loan application being approved or may lead to a higher interest rate.

Pro Tip: Do your research to understand which lenders are right for you. Find out more about the lender and product by visiting their website or calling customer care to get clarity of the requirements and types of loans they offer.

 Falsifying Financial Information

While you might be tempted to fudge the details about how much you make and how much you owe, this is technically considered fraud. If a lender realizes you’ve misrepresented your financial information, they reject the loan.

The biggest reason a lender wants to know about your financial situation is so that they can evaluate your repayment capacity. This might be frustrating if you had your heart set on buying a new Ferrari but only got enough money for a used Chevrolet, you can take comfort in knowing you’ll be able to afford your loan payments.

Pro Tip: Provide full disclosure of your finances as it is today, it will not necessarily deter a lender but hiding details is likely to do that and might make it difficult for you to secure a loan.

Not Researching Your Lender Thoroughly

Taking a loan is a big decision that significantly affects your financial life for an extended period. While lending is largely well regulated, there are still less than scrupulous lenders who use predatory practices to make a profit and especially in Kenya. To safeguard yourself from falling prey to such lenders, do your research before you approach them for a loan.

Keep in mind that a reputable lender will make the whole process of borrowing transparent and will take the time to explain the process to you. They will disclose all aspects of the loan sanctioning charges upfront and offer legitimate repayment options.

Pro Tip: Opt for registered organizations as they will be under strict compliance ensuring consumer safety.

Not Understanding the Loan Product

Loan products can seem complex because they are often presented with plenty of information and jargon that can be difficult to interpret. It is essential for you as a borrower to understand what loan product you are signing up for before you accept the loan.

There are various loan products based on the need that a customer has. Have the lender guide you on the product that best caters to your need.

Understand how the loan product can be used, the requirements of equated monthly instalment (EMI) payments, early repayment options, and other terms and conditions.

It is important to be in the know of the purpose of the loan, and how it will be allocated once issued. You should find out from the lender if you will get the amount upfront or if it will be in installments.

Pro Tip: Before you apply for a loan, get a good idea of its purpose so that you can request the correct loan amount. You can also use an EMI calculator to figure out how much you will have to pay each month and ensure that your cash flows support the repayment.

Bidii Credit is always offering FREE advice and consultation in regards to loans. Contact us today and speak to a financial advisor. We also have a variety of secured and unsecured loans that you can get within a short period of time- From 6 hours

The post Top Mistakes To Avoid When Applying For A Loan appeared first on Bidii Credit Limited.