A credit score is a numerical figure statistically derived. It
reveals your financial position. If your financial position is good , it means
that your credit score is good and vice versa.
Your credit score reflects your fiscal responsibility based
on your credit history. It means that you have used credit before and paid your
debts as agreed and have done it regularly over the years.It indicates how
responsible you are in terms of managing your credit.
An indiviual’ s financial score is usually in the range of 300-850.
Your credit score defines your credit worthiness that is
used as a strong base by lenders to assess your financial position to pay your
debts.
Your credit score is based on your past payment history.
Credit score is the key tool used by lenders for making
lending decisions.It is used by them to assess the credit risk involved when
deciding to grant you a loan.
It is widely accepted in almost all countries as the primary
method for ascertaining a person’s creditworthiness.
Credit score aims to find people with a bad payment
attitude.
To meet the daily necessities of life Money is the most
important instrument used. But when you plan to buy bigger necessities like a
car or house, you need to apply for a loan
to the financial institutions who approve or reject your application for loan
on the basis of your credit score.
A good credit score can get you a loan easily and at the
best possible rates of interest.
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