Just like when you take a loan from a bank, settling out your credit card payments or when you are paying off your installment payments, it’s common for installments to be paid at a specific time. Although it’s necessary to settle payments on time for many reasons, and we will address them later, banks and installment services allow a grace period. And grace period features differ from one service to another.
In some cases, and especially when withdrawing cash from ATMs, the grace period is the period where you pay off the amount you have withdrawn without paying any additional fee. After the period has ended, payments are subjected to charges that vary from one bank to another. In case of bank installments or other kinds of installments, there may be a specific period in which the customer can pay without charges, before imposing charges on the amount that has not been paid yet and so on. The actual problem starts with banking transactions or when dealing with installment authority after the grace period has expired and after the end of the period in which you can pay installments without any additional charges. After the period has expired, the customers’ credit history gets affected clearly and their credit score begins to fall which affects the customers probability of gaining i-Score any loans or benefiting from any installment services in the future.
i-Score Credit History and Number
The credit history is a record in which customers’ history is determined in terms of his ability to pay loan installments, purchasing installments or their bank obligations. The i-Score can be seen as a CV for customers through which we learn the customers' history in dealing with various loans and installments. Thus, knowing whether the customer would be able to pay the new installments or not. So, knowing whether the customer can obtain a loan or an installment service based on their credit record. The credit history is determined through several sources, including banks and credit cards services in addition to government installments related to utilities, housing, etc.
The credit history includes the complete financial record of bank debts, along with installment services and credit cards records, from which the i-Score is determined. It’s a specific number between 400 to 850 determined from credit history. This number represents a clear result for a specific date and for the future dealings with banks. The higher the i-Score number the greater the chances of obtaining loans or being entitled to installment services.
The i-Score number is determined by the Egyptian Credit Bureau, which is the only company in Egypt responsible for figuring out the credit history of Egypt’s individuals and companies since 2005. The company relies on its reports on customers’ data in various banks all operating in Egypt, in addition to the Central Bank of Egypt. It’s possible to know the credit history and the i-Score number by submitting an application to the bank you use. The report takes about 15 days to be issued. Or you can use the official website of the Egyptian Credit Inquiry company to get these data.
Ways to Improve Credit Score
There are various simple ways to improve credit score history, the most prominent one takes us back to the grace period we mentioned in the beginning. Thus, making sure not to exceed the grace period raises the value of the i-Score number. Other ways to improve score include; making sure to pay off loans on time, which applies to not exceeding the grace period when paying installments or the amounts due for credit cards. Maintaining this stability and continuity help improve credit history as quickly as possible.
The option of rescheduling loans is a way to allow for longer repayment periods in exchange of adding more fee to the loan and it's considered one of the indirect ways to improve credit history. Further, many customers think cancelling credit cards is one of the ways to improve credit score history, by avoiding using the card for installments and direct withdrawals. Nonetheless, it’s quite the opposite, when cancelling credit cards you lose one of the ways through which you can improve your credit history by settling out your credit card payments on time.