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Why Your Credit Score Will Be Even More Important in 2018

Let us analyse why Your Credit Score is Important.

In today’s modern era a credit score affects many things including your ability to buy a car, own a house make consumer durable purchases and even become a customer of certain companies. Low credit scores may mean higher rates a loan company will provides you. A credit score is not something to be taken lightly.

What is a credit score? How do I find my credit score? What things affect my credit score? If my credit score is low, how do I improve it? These are all important questions and having the answers could mean the difference in owning your next home, buying your next car or getting a loan for large purchase or in emergency situations. In 2018, your credit score is your financial identity. It’s how you’re viewed by companies and banks. Let’s make sure you’re wearing your best outfit!

What Is A Credit Score?

A Credit score is a three digit number that tells lending companies how well you’ve paid your previous loans and credit cards payments. Lending companies use this to determine your creditworthiness. Your credit score can affect the interest rate you may get on a loan as well as whether or not you are approved.

The most common credit score rating is TransUnion. TransUnion scores range from 300 to 900. Those with a score of 750 or higher are typically entitled to the best interest rates. Banks will make certain assumptions based on credit scores. When reviewing a credit score a company can decide whether or not they are going to finance your loan, give you a lower interest rate, or even give you a good deal on your auto or home loan.

Assumptions are generally made on the following scores:

  1. Excellent Credit: 781 – 850
  2. Good Credit: 661 – 780
  3. Fair Credit: 601 – 660
  4. Poor Credit: 501 – 600
  5. Bad Credit: below 500

There are certain factors that go into determining your credit score. Things like how often you paid your EMI’s and whether or not you ever been late on a payment. What is the balance on your credit cards? Lenders typically look at whether or not you have a high balance on your credit cards versus how much you have available. This means maxed out credit cards, are NOT a good thing. NBFC’c companies also report to the credit bureaus so keep this in mind.

How Important Is A Good Credit Score?

Yes! A good credit score is considered 750 or higher although some lenders may have different standards. A good credit score will provide you with an excellent interest rate. It can ensure your ability to get a loan. Borrowers with higher credit scores are normally given better mortgage and refinancing rates. Why is this? Because lenders believe those with high credit scores are an ideal customer. Having high credit score show the bank that you are a responsible borrower. It also gives you negotiating power when it comes to things like closing costs and other fees. Having a high credit score means banks are more likely to compete for your business because it is in their best interest to offer you the best possible deal.

Another reason your credit score is important is because it is a HUGE part of your financial identity. Credit score affects many things including your ability to buy a car, own a house, make large purchases and even become a customer of certain companies. A credit score is not something to be taken lightly.

You Can Improve Your Credit Score

Maybe your credit score is not so great. That is okay! You can improve a bad credit score.

Here are some ways you can do that:

  • Pay your dues on time. Delinquent payments and collections can have a major impact on your score. The longer you pay your dues on time, the better your score.
  • Keep balances low on credit cards and other. The most effective way to improve your score in this area is by paying down your revolving balances.
  • Apply for and open new credit accounts only as needed. Don't open new accounts just to have a better credit mix--it probably won't raise your score.
  • Don't close unused credit cards as a short-term strategy to raise your score. In fact, this approach could backfire and actually lower your score.
  • Check your own credit reports for accuracy. You can dispute inaccurate information found there.
  • Finally, realize that in combination with the above, if negative information already exists on your report, rebuilding your credit score may take time.

What About Credit Repair?

If monitoring your report, and getting your credit back on track seems overwhelming, consider using a company like Millennium Credit Solutions. Millennium Credit Solutions has set the Industry standard as a reputable organization among credit repair and debt settlement agencies. We’re committed to obtaining the best results possible for each client. Once we obtain your Credit report and simultaneously understand your financial situation, we can analyse and come with a tailor-made solution for you to work on your credit score. We have several remedial solutions that we offer based on the situations you are in. Remedial solutions are different for each of the clients.

So are you ready to take the next step in obtaining a fantastic credit score? The future is in your hands there’s no time like the present to raise your credit score and gets on the right path financially. You now know why a good credit score is important. The only thing standing in your way is action. Make a plan now to secure your financial future and one day have the ability to own your dream home, and be in charge of your financial identity. You can make that happen!


 

At Millennium Credit Solutions, we believe that life is easier with excellent credit. We have a dedicated staff devoted to assisting you with your future financial needs. We provide advice and information on how to best manage your current credit to maximize the impact to your qualifying ability.