08-April-2015 written by : FSI-Team
As great potentials of Indian money markets are tapped, we have a lot of foreign investments, taking place in Indian economy. Besides with an overall increase in standard of living, the demand for money is increasing as well. At such times, people are resorting to borrow money under the "Credit" term to fulfil their needs. Although presently Indian markets are flooded with number of creditors, it's often been seen that when need arises, people are not able to get through credit process on time.
Among several reasons reported for this problem, many individuals get stumbled upon the obstacle of credit score and entire process takes a long detour. To start from the basic thing, credit score is a numeric data that reflects whether you are entitled to borrow money from creditors or not. It basically determines your creditworthiness. When you approach a creditor for loan, your credit score is first pulled out from the bureaus and reviewed, to get an overview of your financial history and determine whether you would be able to repay the amount borrowed.
Thus, checking your credit score is pivotal. Periodic checking of your credit score is recommended as it assists and makes you aware of your financial standing as per the bureaus, and which in turn helps you take corrective measures if required, to prevent yourself from getting in bad books of creditors. Determining validity of your credit score would shrink the entire concept; as a matter of fact to provide you with an overview, first you need to learn to manage your credit score well. Managing your credit score becomes easy once you understand certain concepts that are subsets of credit score.
A credit score is divided as bad credit score and good credit score. When your credit score is below certain score, than it is termed as a bad credit score as in such conditions generally creditors avoid lending financial help. While when your score is greater than set benchmark as per bureau, it is called as a good credit score. Lenders readily provide financial support to individuals with good credit score as in a way it turns as a good source of revenue for them.
Besides if you have bad credit score, there are always ways and means to improve it. Basically, delayed payments, outstanding payments, bad debts, outstanding interests; are some of things that constitute to bad credit score. To improve your credit score first thing is check whether all your dues are paid on time, if outstanding pay them immediately. It will take some time but your credit score shall improve slowly.
Thus, checking of credit score is good and periodic checkups will help you to immediately rectify errors if any. In case of errors you can immediately communicate with your bank and the credit bureau as well; this facilitates speedy rectification of errors. Somehow if you fail to check your credit score, at least six months prior to applying for car loan, home loan, education loan, make sure you have checked your credit score; this will avoid the long wait for loan.
So readers, what are you waiting for! If you have been lazy all this while, ignoring your credit score, now is the time to keep a track on it. Manage your finances well by keeping a track on your credit scores and we promise you won't have to compromise on your dreams.