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  • Are you highly indebted?

  • Do you have cash reserves?

If the lender is satisfied with the answers give

borrower to the questions stated relationship might be established.

above,

a

n by a credit

How can You Establish your Creditworthiness?

Creditworthiness can be achieved by building your equity. This can be achieved by: -

  • Developing positive saving habits by putting aside a specific sum of money in an account at a financial institution monthly, or from time to time. It is advisable that at least 10 per cent of one’s income should be saved.

  • Accumulate cash in Whole Life Insurance or other forms of Annuity Insurance as an investment or as saving or equity.

  • Investing in stocks and bonds that can be easily converted to cash. These instruments contribute to diversifing your assests. Purchasing shares and stocks in a company can also result in positive returns. However, shares are more risky than purchasing bonds, but the returns could be higher.

  • Acquiring or purchasing of land. Try to acquire land before approaching a lender. The ownership of land engenders a favorable response by lenders. Land is also an asset that can appreciate quickly.

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