Ashish Sharma is on a good position in a real estate company. His salary is good. There is a small family. The family has wife and two children. They have many credit cards. But, often he forgets to pay bills on time. He did not know that he would have to pay a huge price for this mistake. His application of home loan of Rs 75 lakh was rejected to buy the house. He tried to find out the reason in the bank. He came to know that his credit score is not good. If you also default on credit card bills or Amazon Prime payment then you should be careful.
Nearly watching your financial habit
Today your financial habit is being closely monitored. No matter how much your income is, if you do not pay your bill on time, then your credit score (Credit Score) Sure is sure. A person’s credit score is a mirror of his financial habits. This shows how serious he is about the matter of money and money. If your credit score is high, then your application of the loan is very likely to be approved.
Four companies prepare credit score
The credit score is between 300 and 900. The higher this score, the more interested in banks or NBFCs, the more interest in giving you a loan. Four companies prepare credit scores in India. The oldest among them is CIBIL. This is followed by Experian, Equifax and Crif High Mark. If you have not checked your credit score recently, then you should check. It has many benefits.
More than 750 credit score is considered good
Sujata Ahlawat, Senior Vice President of Transonian Cibil said, “Credit score of more than 750 is considered good. But, in a bill payment, your credit score may decrease at a rate.” If a person forgets to pay the bill on time again and again, then his credit score is sure to deteriorate. Not only this, if you default on the payment of Netflix and Amazon Prime subscription, then your credit score will also decrease. Many times, there is no money in the savings account, it is defaulted on OTT payment.
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Try to avoid these mistakes
If you reach close to the limit from credit card every month, then your credit score gets spoiled. The special thing is that now credit score companies are keeping a close watch on a person’s financial habits. Artificial intelligence and algorithm are being used for this. This affects the default on your credit score on any payment. Therefore, never default on bill payment and secondly, keep checking your credit score from time to time.