It is a common practice these days to go for a complete health check up quarterly or half yearly. But have you ever considered checking up your credit health? Being physically and mentally sound is no wonder a prerequisite for a happy life. But, at the same time, it will be only foolish to overlook you credit health especially at a time when credit plays a very important role while taking major decisions like buying a house or a car. You have to be equally vigilant – in fact do your best to maintain a satisfactory health of your credit life just like you would do for your own health.
The need for a well planned credit health strategy might not seem very significant at first glance. However, its importance will surface when you have to avail loans, credit cards, account opening and all other kinds of credit facilities. But firstly, you have to know that a credit score speaks volumes about your character and your capacity. That is why it is implicitly agreed that these two attributions are the two most important C’s of credit health. If you are responsible in handling your finances, it automatically reflects on your credit report and vice versa.
The qualitative aspect of the way your credit is calculated, you can find out how this impacts on the quantitative side of it. Credit score is a numerical expression based on points system ranging from 300 to 900 points. If you manage to score between 700 to 900 points then it is a high scoring credit report.
Now that you are aware of what a credit score is, you should also know how it is intricately related to your day to day life and why it is important to maintain a healthy credit report card. If the credit report is satisfactory i.e. you have commendable credit points, only then will the bank approve your loan. Not only in the case of loans, but also while applying for a telephone connection, applying for jobs, insurance premia, rentals and a lot more.
Another thing to keep in mind is that bankers and lenders always check with credit bureaus about your credit report whenever you apply for car loans, house loans, credit cards, telephone communication. If you score well in your credit report with anything between 700 to 900 points, your demand will be easily processed and approved. Moreover, banks generally ask for lower rates of interest for those who have a healthy credit score. Therefore you can see that a good credit report is equally linked to saving more money and duly increasing your bank balance.
Besides loans and credit cards, another very important factor of life that is at times, if not always, influenced by your credit health is your career. This might come as an interesting revelation for you because not many can comprehend the link between credit score and job prospects. Well, it may not affect much if you are applying for an entry level position. But if you are going to going to be posted where you need to handle cash and overlook the financial aspect of the company, you will surely have to give your potential employers the right to go through your credit report because, if you don’t then it obviously gives a wrong impression.
Credit Sudhaar is a credit health improvement company run by professionals who have experience in Credit Analytics and Credit Research.
Courtesy : Yahoo