The credit score is just like the marks you got in your exams in schools or colleges. It is made by a society named CIBIL. CIBIL is a part of trans union. So every other time you get to spend your hard earned money you must think to spend it wisely. It is so in case of credit card users. Whenever you shop using a credit card you don’t pay the amount at the same time but someday it has to be paid. This is being tracked by the cibil, i.e. when do you return the amount. What is the time you take to return and every such thing. Gathering all the information, it prepares a credit score or credit report. It cant be viewed by normal citizens casually. It needs a token amount to be submitted. It is a kind of rating of your spending and returning. You will be judged on a ten point scale.
It has a big benefit financially. One thing everybody is aware of the way banks serve their customers. These days they have grown quite a bit but usually it takes longer to get served. And if your need is getting a loan then it is simply rounds of banks in the entire week before your loan gets sanctioned and processed. But this behavior is not due to their slow service but is dependent on your credit score. Here lies the importance of your credit score. The banks provide loans to customers who are in terrible need and will be able to pay it in future. They cant simply sanction loans to people with no credibility of repaying it. So this condition to check whether a person is capable, credible and will be able to pay in the future is decided by the credit score.
The credit score is a deciding factor as it in turn regulates your repaying capacity and worth of an individual. So if you pay your credit card amount on time, your score is bound to escalate. This simply means that you have the patience, right vision, knowledge of using your credit card and paying it before time to avoid any late charges. So an individual with good credit score is likely to receive the loan faster as compared to the one having a poor score.
Further a person with a good credit score is likely to pay lesser rate of interest when you pay for your credit card or for any loan amount. This is like building your impression and image as per your decision. You decide the time required for any financial work or transactions. So if such things are possible why not to make it better. There are lot of tips from financial adviser to improve your credit score, view your report and manage funds accordingly.
So it is always advisable to keep your score high by returning the amount spent on time so as to get the further benefits from banks. Now that you know a lot of credit score, you must be prepared enough to make it higher. Hopefully you are in a position to do that.