Every individual wants to give his family the best in terms of their needs and wants. They want their family to enjoy each and every luxury available and affordable.
For people who are financially strong, it is very easy to get whatever they and their family want. People, who are not financially strong, take financial assistance to provide luxury facilities for their family.
For people who are not financially strong will have to take assistance from banks and financial institutions in the form of loans. Banks and financial institution provide credit cards and loans on the basis of the credit score of the individual.
Now, Credit score is a three digit numerical figure which is a snapshot of the credit health of an individual. Credit Score ranges from 0 to 999 for all the bureaus. CIBIL, Experian and Equifax are the major credit bureaus that provide credit score and credit report are.
Of all these, CIBIL is the prominent credit bureau of India. Generally a credit score of more than 750 is considered as a good credit score.
All the banks and financial institution rely on the credit report and score provided by CIBIL. These scores are calculated by the bureau on the basis of the basis of the past and present credit behaviour of the individuals. Credit behaviour of the individuals can be identified by the credit history of that individual.
Credit history can be determined by the credit accounts taken by the individuals and the way those accounts are maintained. If an individual maintains his accounts in an efficient manner, it will result into a positive credit history and vice versa.
Nowadays, maintaining a good credit history is really important for individuals who intend to take financial assistance in the near future. If they do not do so, there are possibilities that their loans and credit card applications will get rejected.
Banks and financial institutions offer lower interest to only those individuals who have a relatively good credit score and positive credit history. Individual with bad credit score and poor credit history will have to pay out higher rate of interest.
Nowadays, banks and financial institutions highly depend on the credit history of the individuals whether it be a person whose income is good or not. They will charge the rate of interest as per their credit score and credit history.
So, maintaining a good credit history will help built good credibility and become credit healthy.
Credit Sudhaar is India’s first Credit Health management & improvement company whose goal is to help clients to Restore, Enhance and Protect their Credit and make them credit healthy