To fulfill your dreams, don't ignore your credit health

Can you imagine how credit score and credit history can obstruct in fulfilling your dreams!! 

Nowadays credit score and credit health are gaining importance. These things are analysed by Banks, Financial institutions, Insurance companies, Telecom companies and even by Employers. People with low credit score and bad credit health face a lot of difficulties in getting finance from the market.

As the rising importance of credit score and health, every individual have to mark these things important in their personal finance and keep themselves updated; otherwise they could face difficulty as faced by Mr. Manish Kumar.

Mr. Manish, a middle class businessman was happy with his life. He was very good in his work which inspired him to expand his business which could change his life in the future. His dream was to have a respected name in the market. He did not want to be a billionaire, but just wanted a good name in the market.

He did not have sufficient funds which he could invest to expand his business. After all his thoughts, he finally decided to apply for loan for bank. He was confident that his loan will be accepted. 

One day while he was working in his office, he received a call from the bank which informed him that his loan was rejected. He was shocked to hear this news. He was totally depressed. He asked his agent (advisor) the reason for rejection, which informed him that his loan was rejected due to his bad credit health.

Manish was unaware about the term “credit health”. He was also unaware that bad credit health could affect in his loan approval. He also came to know that his credit score was low i.e 550 as he had defaulted payment in the past. He never knew that defaulting on payment could raise this impact on his report and reduce down his credit score.

Where credit score is a three digit number which ranges from 0-999 for all the bureaus. It is calculated by credit bureaus. The three major bureaus in India are CIBIL, Equifax and Experian. These bureaus collect data from all the banks and financial institutions in the country. Generally a score of 750 and above is considered to be a good.

Individuals with score lower than 750 will find it very difficult to avail loans and credit cards from banks and financial institutions. 

Maintaining a good credit health and credit score is nowadays essential for individuals, if not taken proper care will result in rejection of loans and credit cards or will have to pay high interest on the same. 

Many people like Manish are unaware about their credit health. Nowadays credit health is considered to be important part of personal finance of every individual. Credit health is considered equally important to your physical health, so people should be credit healthy because “Credit health is real Wealth”.
Source: Secondary