01-June-2015 written by : FSI-Team
A Credit Rating is one of those things that everyone will acquire whether they want one or not. It's almost impossible to experience life without any form of credit. In fact, I would go so far as to say it is impossible. Your credit rating first appears, the first time you apply for credit. Obviously it’s possible that you're one of the small minorities that has never applied for a mortgage, or loan, or credit card but you would be amazed at who exactly will perform a credit check on you.
Although the banks and financial institutions may still have a choice to supply your credit related information to the credit bureaus, it is far less detrimental to your credit than a repossession or bankruptcy.
A simple matter like repayment of a loan or paying the monthly bill of a credit card under your name can really do wonders for your credit rating. Lenders and creditors always check your credit history and background before giving you any form of advance. The more you impress them with your credit rating, the better the chances are of your loan getting approved. The situation is exactly the opposite when it comes to a poor credit rating.
In this way, your credit record is a little bit worn round the edges, but all is not lost. There are various banks that specialize in sorting out loans for people with poor credit score. Unfortunately, because of low credit score, the interest rate that these individuals pay may be higher than the most competitive loans on the market. However, if they service their loan effectively, this will be recorded with credit rating agencies, for example, CIBIL, Experian or Equifax and will surely somehow repair your credit record.
Having insufficient credit history can also bring down your credit score. Many school understudies find this after they graduate and start to establish their credit. The prospective loan specialist does not have enough credit history information to make a valid decision about your creditworthiness. For this reason, it is a great idea to get credit established early, like while in college.