How Your Credit Score Impacts Your Financial Future?

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How Your Credit Score Impacts Your Financial
Future?
Who in the world has not heard of this term, in
fact, more than we care to admit? Also, who has
not been asked by their parents and grandparents
to ensure that their score stays good, above a
certain limit? But do we truly know what exactly
it is even more importantly, the profound
influence it has on our day-to-day lives? After
all, what exactly is a low credit score's impact
on a personal loan? Now if we are talking about
our home country, this three-digit number,
conveniently known as CIBIL, is crucial to
unlocking a world of financial opportunities.
Still confused? Well, no need to worry, as here
we will discuss its
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workings how it actually makes a difference to
our financial future. So, without any further
wait, lets go ahead, starting from What is
Credit Score? Simply put, this is a three-digit
number - thats all it is. Think of it as a
report card but about your ability to handle
your finances. Now understand that it is not
arbitrary, but actually an indication of your
credit-worthiness in India. Simply put, this
determines the ease with which you can secure any
other sort of loan. Now, this number (CIBIL) is
calculated and then managed by Trans Union CIBIL.
What it is? Well, it is only Indias leading
credit information storer, so they are kind of a
big deal.
Which score is Good? A difficult question to
answer. It all depends on multiple factors
However, for simplicity's sake, anything above
750 is great. It is considered as a good Credit
Score for instant personal loan. Just by having
such a score will lead to new opportunities,
especially regarding various financial products,
and services with favorable terms. Importance
of Credit Score After establishing exactly what
this number means, we need to ask do they
really matter? It is only 3 digits, so how come
they have that much of an influence on our
lives, they must not have.
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• But if you think like that, then you are
  incorrect in your assumption. In fact, it is
  quite useful for your financial journey in India.
  Only through this can you gain access to
• Loans Have you ever tried getting a loan? The
  first thing they ask of you is your score. Yes,
  this is actually by design, as it allows them to
  gauge whether you are a loan risk or not. It
  will ultimately translate to money saved due to
  lower interest.
• Credit Cards This is also needed to apply for a
  credit card as well. It also directly influences
  the type of credit card you can even apply for.
• Insurance Premiums Guess what? A good score will
  even help with insurance premiums too.
• Rental Applications In Tier-I cities, landlords
  (or in high-end societies) might confirm your
  score before approving your rental application.

Determining Your Credit Score for Financial
Future The good news for you is learning about
the score is a simple process. Yes, unlike many
countries where you have to pay for this info in
India, this report is available free of
cost. Also, once you have gained access to the
report and your score, keep in mind that it is
not set in stone. Every financial activity you
make impacts it, so you must monitor it
regularly. Also, take some time to analyze the
report thoroughly. The aim is to look for any
discrepancies, and contact relevant authorities
if you find one.
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• Do or Don't to Maintain Credit Score
• It gets easy to maintain your credit score if a
  few do's and don'ts. Ensure you keep all the
  do's and don'ts in mind and keep your credit
  score in good shape that opens up future
  borrowing opportunities. Let's have a look
• Dos
• Make sure that you are paying your bills on time
• Credit card utilization must be less than 30 (no
  reason, it is a good number to target!)
• Only get a new card if you really need it
• Donts

• Missing payments of your bills, EMIs, and quite
  frequently at that
• Using your credit cards too much maxing them out

• Closing non-use old accounts
• Ignoring any discrepancies in your MSME CIBIL
  Report
• Conclusion
• Whether you want a personal loan or just need to
  know the required Credit Score for Business
  Loan, you must understand that a good CIBIL score
  is vital. It literally can influence your
  financial future. So you need to start taking
  care of it right now!
• Don't wait any longer take charge and check
  your score right away!
• Source Link-
• https//www.dadhichfin.com/blog/credit-score-impac
  ts-your-financial-future