A high credit score is essential for many facets of your financial life. S Ravi, financial expert and former BSE Chairman brings limelight on how to understand and build your credit score. Your credit score is a crucial financial tool that can influence your financial destiny, and a high credit score can open up new opportunities. Building a good credit score is a continuous process that demands discipline and financial accountability. One must understand that your credit score is more than just a number; it is a financial passport that can either open the door to a world of options or limit your financial journey.
Whether you’re asking for a mortgage, a car loan, or a credit card, your credit score is critical in evaluating your eligibility and the interest rates you’ll receive. Several factors influence the trajectory of your credit score, including your payment history. According to the former BSE Chairman Sethurathnam Ravi, making timely payments on credit cards, loans, and other financial commitments can dramatically improve your credit score. Paying bills on time indicates good financial behaviour. The longer your credit history, the more information lenders have when determined your creditworthiness. Keeping older accounts open improves this component of your credit score.
Building a strong credit score is a proactive process that requires diligence and strategic financial planning. S Ravi BSE, Former Chairman adheres people to start by creating a budget and living within your means. Ensure timely payments of bills and set up automatic reminders to avoid missed due dates, else it is very easy to get consumed by credit burdens.
S Ravi also shares the pros and cons of credit score in his latest articles. According to the financial expert, a high credit score opens doors to better financial opportunities, such as lower interest rates on loans, credit cards with favorable terms, and higher credit limits. It gives you negotiating power when dealing with lenders. But he also states that on the other hand low credit score can lead to loan denials or approvals with higher interest rates, limiting your access to credit. Sometimes landlords may use credit scores as a criterion for renting a home.
S Ravi BSE , former Chairman affirms that it is always important to understand the factors that influence your credit score and how financial decisions impact your creditworthiness. Stay informed about your credit status by regularly checking your credit reports. Create an emergency fund to cover unforeseen expenses and reduce the probability of missed bill payments. Finally, if you are having credit problems, consider receiving advice from a financial counsellor or credit repair professional to help you get back on track. Your credit score is a crucial financial tool that can influence your financial destiny, and a high credit score can open up new opportunities. According to S Ravi, building a good credit score is a continuous process that demands discipline and financial accountability.