ALL >> Investing---Finance >> View Article
Importance Of Credit Score
Creditworthiness of an individual is determined by his or her credit score. A person’s credit file is scrutinised and is judged on the basis of his credit report. These data are gathered from the government registered credit bureaus. In India, at present there are four credit information companies which are licensed companies of the Reserve Bank of India (RBI). These are Credit Information Bureau (India) Limited (CIBIL), Experian, CRIF High Mark and Equifax.
Credit score may vary between agencies. CIBIL credit score is considered to be the most popular one. It ranges from 300 to 900. The best score is 900. Person with no credit history have score of – 1. It takes time to gain a satisfactory credit score. A time period of at least 18–36 months is required.
Scheduled banks and other financial companies analyse the credit score of an individual before approving any loan to an individual. Credit card companies also keep of the track of a person’s credit score before offering him or her credit card. The lending companies always tally a person’s credit score with information in his or her credit report in order to calculate the risk of lending money to a borrower. There is always low risk of loan application getting rejected if the credit score is high. Most of the time companies do not take chance with individuals with low credit score.
One can borrow money for various purposes from the scheduled banks or other financial companies with a good credit score. Availing home loan in Delhi and other places in India are quite common nowadays. Other retail loans like car loans and educational loans are also provided by banks and other financial companies & institutions.
loan against property are easily available for personal or business ventures with simple way of repayment through easy instalments.
Approving of unsecured business loans mainly depend upon of the credit score of the particular borrower. The loan is approved or sanctioned by calculating his or her credit score and by analysing the credit history and the cash flow. No property or assets are kept as collateral against the loan being approved. The financial companies take a big risk in such cases depending on the credit information of the particular borrower.
Having a good credit score may lead to access to good financial and business prospects and opportunities. It helps in the long run to manage the resources efficiently.
Investing / Finance Articles1. Struggle In Getting Emergency Loan? Apply It Here
2. Raise Capital For Your Business With Loan Against Property
3. Know The Best Business And Home Loan Deals.
4. Know About All Type Of Loans Here
5. Instant Personal Loan- Points To Remember Before You Apply
6. How To Get Complete Assurance Of Services Before You Get A Loan?
7. Get The Best Business And Home Loan In Delhi.
8. Get Instant Loans On Your House At The Time Of Emergency
9. Get A Home Loan In Delhi And Make Dream Come True
10. Features To Check Before You Get Loan On Your Property
11. Are You Eligible For Low-interest Loans In Delhi?
12. Us Tax Returns Benefits And Future In Financial Progress
Author: Berkley Josh
13. Apply Personal Loan Online
14. Know About The Eligibility For Pmay Scheme
Author: Rudra Raghavan
15. Godrej Tranquil- A Place To Call A Home.
Author: Pooja Agrawal