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.
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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.