Healthy credit score gives hassle free facilities: Pingali Venkateswara Rao

Hyderabad (RNI)  Financial expert and analyst, social reformer give comprehensive analysis on good credit score and it's impact. A healthy credit score is a must to get loans at low rate of interest (ROI). It tells about the nature of the borrower in meeting the debts. Generally a score above 750 is said to be good. Banks give loans at low rates to those who maintains with this score. Several Reports revealed that many are now failing to maintain a proper credit score. There can be many reasons why a person's credit score may drop. It can be increased only through continuous financial discipline. It is possible to increase credit score from 600 to 750. But how long it takes depends on personal financial discipline. There are obvious ways to do this. What are they..

Pay on time: Whether it's secured loans like home or car loans, personal past dues or unsecured ones like credit card debts, it's always important to pay them off on time. Even a month late can have a serious impact on your credit report. Lenders may not want to lend when they see something like this. There are chances of being considered as a person who cannot repay the loan properly. This will make it difficult to take new loans in the future. If you frequently make late payments, your credit score will go down. If it is not possible to pay the installment within the due date, it should be paid as soon as possible thereafter. Then the loss will be reduced to some extent. Regular payments will improve your creditworthiness.

Increase credit score:Opening accounts or making transactions without your involvement can negatively affect your credit report. So, credit report should be checked from time to time. This will help you understand why your score is low. Regularly checking credit reports will help you track your score's progress. Any mistake can be detected and corrected immediately. If there are any errors or discrepancies in your report, you can file a complaint with the credit bureau to have them corrected.

In a short time:Taking multiple loans within a short span of time. Not always good. This makes repayment difficult. Finally you run the risk of defaulting. This can damage your credit score. If you miss payments repeatedly, then lenders may lower your credit score. The sanctioned loan amount will be reduced. There is a possibility of increasing the interest rate on new loans. Or your application may be rejected. In some cases without using credit cards. prevent There is no immediate impact on the credit score when you apply for a loan. But, if you borrow unnecessarily, it becomes difficult to pay it back on time. So, borrow as much as you can afford.

From four organizations:A credit report, a credit score, is basically your financial history. There are four institutions in our country to know this. Chief among these.. Credit Information Bureau (India) Ltd. This is called CIBIL. Most banks look at the CIBIL score. Apart from this, Experian Equifax and Crip Highmark also provide a credit score. These organizations provide a credit score based on information collected from the banks sources.

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