by Mr. Sriram Kalyanaraman, Equifax Credit Information Services
Risk scores play an important role in credit decisions of many lending institutions. Typically, higher the score, lower the risk profile of an individual, indicating a better ability to manage debt.
Credit Report & Score..!
Lenders evaluate the applicant's credit report and score along with other key information including income, employment & residence status, against their own internal decision criteria to determine the applicant's ability to qualify for a particular loan type and interest rate.
 |
| Sriram Kalyanaraman |
Repayment Track Record on Borrowings..!
To improve credit scores, one must better their repayment track record on borrowings. Delinquency in repayments on various loans & credit cards is the most frequent factor that negatively impacts the credit score.
Paying bills on time, consolidation of payments from a single account that has adequate balance at all times, spending within one's means & remaining alert on payment due dates / amounts are imperative in maintaining a good credit score.
One should apply for credit only if needed. Access to multiple lines of credit including open & unused credit cards is also likely to impact individual scores since it reflects over - indebtedness. It is advisable to update the lender's records with changes in your addresses.
Not updating changes in addresses & telephone numbers may result in credit card statements & payment reminders from lenders not reaching the recipient on time, resulting in delayed payments.
Other factors impacting credit scores include demographic details such as age, address, duration of access to credit, number of loans & credit cards possessed and individual credit hunger.
About the author...!
Mr. Sriram Kalyanaraman is Director business and product development at Equifax Credit Information Services
Contact:
Equifax Credit Information Services Private Limited
Office Number 2 Ground Floor,
Lotus Estate, Madhusudan Mills,
Near Peninsula Corporate Park,
Shankar Rao Naram Path, Lower Parel,
Mumbai - 400013
Equifax Credit Information Services Private Limited
Regus Business Center, Room 502, Level 6
JMD Regent Square, MG Road
Gurgaon, Haryana- 122002
Equifax Credit Information Services Private Limited
Office 106, DBS House
26, Cunningham Road, Bangalore-560052
Toll Free Number : 1800 209 3247
Fax Number : +91 22 6112 7950
Email Address : ecissupport@equifaxindia.com
Timings: Monday to Friday 10 hrs to 19 hrs
Discipline is the key in improving good credit score. Only buy what is needed and pay your bill in full in time.
ReplyDelete