A credit report is something which is formulated by tracking the records of all the past financial transactions.
A credit report has personal information pertaining to the following :
- Basic Details: the basic details about the persons like contact, name and other vital documents.
- Accounts: the total number of accounts held by the person, along with the total number of transactions are recorded.
- Enquiries: How many times have you checked your report, and the company has asked for it to be recorded.
Some key points to keep in mind while it comes to checking your report regularly :
- Score: Maintaining a good score is highly relevant. Higher the score, better will be the loan seeking chances.
- Lower Interest rate: Having a good score can fetch you a more moderate and reasonable rate of interest loans.
- Credit Report: It is critical to undergo a regular credit score check. Thereby, in case there are any errors they can also be rectified.
- Faster loan approval is also possible.
Credit Score Range :
Below 300: Poor
600 Above: Average
700 above: Good
Different credit score ranges hold different impacts.
People can follow some useful tips in order to maintain a good score. Some of them are as follows :
- Make timely payment and clear your dues
- Make the optimum use of your credit cards
- Don’t apply for multiple loans at the same time
- Choose the right mix of credit
I hope that these tips were useful and you can maintain a good credit report.
Continue Reading : Understanding your Credit Report
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