Each and everyone will be much excited when you are going to buy a new thing. We have had that feeling when we were a kid and we will be excited to buy a new dress. When we grow older we have the same feeling when we buy bigger things. These bigger things may include land, house or a car. There are various other small accessories too like a branded mobile phone which just got launched in the market. The thing which we are going to buy might be different but the feeling will be same.
What is credit rate?
Every person will have a credit rate according to their individual financial history. This will be based on the loans previously taken. This will also include how good you are in repaying the loan. If you take a longer time to repay the loan more than promised then you will join the defaulter list. This will affect your credit score and it will go low. The same applies to your interest payment. If you get a loan and pay the interest regularly, then your credit score will increase. But if you take more time to pay the amount or if you skip paying the investment for a month later, your credit score will go low. You can click here to find out more. The important thing is the longer you get loans and regularly pay the higher your credit rate will be. This means that you are capable of getting more loans and that you are also capable of paying these loans back. This will create a good impression.
What is the purpose?
Having a good credit score is essential. If you have a low credit score then getting a loan in the future will be difficult for you. When a person has a low credit score, most of the banks will deny giving a loan. For a small personal loan also you will be denied the money. If you have a low credit score, it will create an impression that you are a regular defaulter and that it is a risk giving you money. So, most of the banks will not approve the loan for you. So you should first check what your credit score is. In case it is low then you should try to make it high. You have to start paying your bills on time. Phone bills will also count. If you have prior loans and you are still paying interest, and then start paying the interest properly. Also, repay the loan on time.
Avoid checking the credit score regularly which will also affect your credit score. Once your score is negatively impacted, it will take time to rectify it.