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Yogi Zone

Useful articles for your finance management by our team of experts

Do you have a Credit Strategy?

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credit strategyEvery person who has ever accessed credit in India has a credit score. Here is some information on why a credit score is important and which will certainly tell us that why it is necessary to build a credit strategy to save ourselves from thousands of bank and loan issues.

Potential Lenders and Companies Will Look At Your Credit Score

Whenever an individual applies for anything through a bank – loan, mortgage, personal loan, cell phone, apartment, or other item, their credit history is pulled as well as their credit score. The overall score is a major factor in whether or not the action is approved. For example, if a person has a low credit score then a cell phone company might not issue them a contract and if they do, they might require a deposit for service.

A Credit Score Speaks Volumes

A credit score speaks volumes about how fiscally responsible a person is. Where financial transactions are concerned, people want to minimize the risk that the borrower will default on their financial obligations. This is why even having a high household income with a bad credit score means that a person will often be denied for lines of credit such as credit cards.

These two reasons are strong enough to give us a wakeup call that if we have not started preparing some credit strategy yet, we will get screwed up big time. The bank manager will show big thumbs down and won’t think for a minute to reject your loan.

Now, let’s have a look at some positives once you start planning a credit strategy -

 

Starting a Business

If you’re thinking about starting a business and need a business loan, guess what! Your credit score and history will factor into your eligibility for small business financing. Regardless of whether you’re starting a business from scratch or trying to get the funds to expand, your individual credit score will affect your ability to get a loan for your business.

Getting lower Interest Rates

While a good credit score is an important factor in obtaining any type of financial assistance, many banks are still willing to give loans to individuals with poor credit. However, if your credit is damaged, it will still be a struggle to get a loan, and when you do, you are likely to pay a much higher interest rate. This is how financial institutes outweigh the risk of giving you money.

These points are merely enough to describe what the importance of credit is and how beneficial it can be to plan for future profitable investment. Get started today and know your Credit Health!

All information in this article has been provided by Credit Sudhaar

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