The bank will check your credit rating before they offer you a loan. You could be declined if you have a poor credit history, or only receive an offer that is more detrimental to your credit health. Improve your credit to avoid this.
Credit score – A necessity for bank loans
Previously it was a massive work and the process was pretty elaborate but with the advancement of technology life has become easy and friendly. Nowadays I can check my credit rating online. Credit Score is one’s history of credit in details including the way one can use their own credit money.
The main intention behind knowing your credit score is to compare the amount of loan that one can apply for or get in the market. The state has an online Market place where one can insert the online credit score that they have checked and apply for a loan after a detailed calculation and comparison of different companies approving different amount of money. Once I check my credit rating online I can be sure about the money I can apply for as the more the score will be the more money I can get approved as a loan.
The banks avail loans for personal, professional, home, car and many more other investments for which one does not have immediate cash but wants to purchase or own the product and is ready to payback a little extra in instalments. To avail such loans an individual or a company has to fulfil certain criteria among which checking the online credit score is very important or else the person can be taken for a ride and sanctioned a loan which will be a lot less than what he/she deserves. Most of the loans are cleared if the credit rating is healthy and above a certain minimum.
Credit cards are the cards one gets to shop, eat out or spend on a regular basis a higher amount of money than what one can afford. Taking the facility from the bank and repaying it later in instalments. Even to apply for a credit card if one checks his credit score online he would be sure of the amount that will be set as a credit limit on my card.
All credit cards come with a credit limit more than which you can’t purchase. The limit is set on the basis of the credit score. Each bank or investment company have their own schemes and limitations. Even the payback or interest amount varies from company to company and from bank to bank.
The bank follows a process to approve a loan. First the applicant fills up the application form for the loan. After it is handed over to the bank, the bank then checks the National Credit rating list for the credit score and detailed credit report of the individual or the organisation.
If the score is high then the form gets eligible for a documentation check. If the score is low application will be rejected or even if the eligibility check fails the proposal is rejected. If all works fine and is positive only then the loan is approved. So before applying for any loans or credit cards I must check my credit rating online and then proceed with a confirmed plan.
Here are the tips that one must keep in mind before applying for a credit:
1. Check that you have enough in your savings account before applying for credit.
2. Try and get a card which has a high credit limit in order to get the most of the card.
3. Try and keep the credit account balance below the credit limit so that your credit rating is improved.