Have you come across people in your friend circle who boasts about getting loans at cheap rates or starting a business with affordable credit? Well, they have a reason to boast.
This is because they are getting the best interest on mortgages or unsecured loans, credit cards and even insurances. Their job applications are also considered favourable when compared to a person with a lower credit score. Thus they can be called pro’s in handling their credit scores and finances.
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Each one of us dreams of flaunting a perfect credit score and thus end up focussing more on the errors we make. But before focussing on the negative side we must acknowledge our good credit habits. Here are four signs you need to keep track of, to understand whether or not you are a credit pro:
Checking credit score and credit reports regularly for tracking errors or wrongful entries is one of the best habits people can inculcate. However, amidst the busy schedule of our day to day lives, we often forget to keep a track of our credit report. Most often people often check their credit score and not all of them have time or take the effort to go through their credit reports.
See Also: Credit Score India
So if you are the one, who consistently keeps a tab of your credit history and is taking extra efforts to maintain it, then we must admit you know how to take care of your personal finances.
As we know, banks and credit institutions prefer individuals who have a good credit score or have an excellent repayment history while sanctioning loans. A credit score of above 750 points says a lot about you as a person. This means you are a responsible borrower, a person who knows the value of timely repayments or simply a person who is creditworthy.
Therefore if you have been in the 750+ category for some time now then you must give yourself a pat on your back. It shows that you have been consistent with repayments and have the ability to manage your finances well. It means you are that person who takes liabilities and debts seriously and tries to pay them off responsibly. It takes a disciplined person to pull that off.
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You Check Your Credit Score Before Applying For A Loan Or Credit Card:
When it comes to applying for credit in the form of bank loans or credit card, experts always recommend you to conduct a credit score check before applying for one. Banks and financial institutions conduct a thorough verification of the credit report before sanctioning loans or credit cards to individuals.
Thus if you are the kind of person who applies for loans only after checking your credit score then you are certainly an expert. It not only helps you decide the right time to apply for a loan but it also saves you from hard enquiries.
The most important sign to watch out for is whether you know the difference between being credit savvy and credit hungry.
You will be categorised as the former if you are maintaining a pattern. For example, if you are the person who regularly tracks your credit score, scans credit history for errors or is maintain a credit mix through secured and unsecured loans then you will be considered a credit savvy individual.
But if you are a person who applies for credit too frequently then you will be seen as a credit hungry person. For example, if you want to secure a loan and you have applied for credit in five banks then it may not work in your favour.
Thus only an expert will know that every time they apply for credit they will have to go through hard enquiries which hurt the credit score. You are certainly a pro if you already know the importance of spacing out credit applications.
See Also: Cibil Score For Credit Card
If you are a person who can relate to three out of four signs mentioned above, then you may consider yourself a credit pro. However, if you cannot relate to the above practices then don’t feel dejected. You can start right away and become a credit expert soon.
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