Credit Rating

[Ali.S.Hill]

hey guys, my name is ali.

i have been a member for a few months now and don't for one second think i know everything. i have had 6 failed bankrupt attempts but finally i have made a success of one in the regional challenge. the one thing that has confused me is the credit rating and the amount i can borrow. i was allowed to loan the same amount at the start of the game when i owned nothing. now i own 4 birds and i can still only borrow the same amount from the bank.

how on earth can i buy more A/C if my credit rating never moves from CCC im restricted. rightly or wrongly i assumed that if i own and not lease A/c that my credit rating would improve. but it has not happened.

any advise or explanation would be appreciated

Ali

[JumboShrimp]

Without seeing your airline, I think you just need to work on improving your profit margin.  You mainly grow from profits your existing aircrafts generate.

If you follow this plan, at some point, your credit rating will go up, and at that point, you will not need it.  You will not need to borrow to grow, since you will already be growing from existing profits.

Which brings us to the general rule the banks operate under.  They don't want to lend you money when you need it, but they do want to lend you money when you don't need it.

[schro]

Credit rating is a function of your airline's age, revenue and company value (unless your cash is negative, then it's bonkered). Your payment history has zero impact on your credit rating (nuance: if you don't make payments, your rating is bonkered until they are made again, but they bounce right back). Continue growing your revenue on a profitable basis and eventually it will improve. The amount of money offered as a loan will also not change very much as you ascend the credit ratings - it has its own formula.

As far as owning planes, since there's a hard upper limit on amount borrowed, you may as well just cashflow it from your profits rather than relying on the bank.

[tyteen4a03]

You definitely should not start with owning planes. Lease your planes, get your profits up, and you might find yourself not needing loans at all.

Generally speaking profits alone will be enough for you to buy new planes.