A Beginner's Guide For Knowing and Improving Your Credit Score

If you're still confused when considering "What is my credit score?" - you're not alone. The Credit Rating system is among the least understood analysis techniques in the world of banking and finance; and any young professional needs to make sure that their credit check qualifies them for the best aid and benefits from banks and other financial resources. While most people still relate this rating to just their applicability towards credit cards and loans; a deeper look at personal credit scores will reveal just how important this rating is for a 21st Century professional's financial portfolio, and future possibilities.

To begin with; knowing my credit score is a personal responsibility that I, as a professional, and a participant in financial activities; must endeavor to improve. The core banking sector, or your employer will not be interested to help you improve your ratings by any vested interest. They can only provide you the foundation, and fuel the specific funds that help to build your credit ratings. These include savings like the PPF, Insurance Policies, and Mutual Fund Investments that develop your portfolio over time. On the other hand, personal banking services like credit card companies or investment managers are interested to help you out with your credit ratings. These companies provide certain direct services that are related to a person's credit check; and hence have a vested interest towards your personal financial portfolio.

Your credit score makes you applicable for better loans, which have lower interest rates, and more flexibility. While a loan you run after will put the concerned financial agency at a more advantageous position; people with a strong credit rating have things the other way round! People who qualify with a strong credit check are automatically approached by banks and credit card agencies as candidates for loans or other forms of credit. In turn, with every loan you pay back; you are graded for better financial services and more credit according to this system. A person with a good credit is not necessary someone with a lot of money in their account; but a customer who has taken pervious loans, and paid them back successfully.

There are also several other ways to improve upon my credit score; including recurring deposits and small-term fixed deposits with a bank. However, these add lesser points to a person's credit score than activities like purchasing on credit cards or paying back a personal loan. People with a strong credit rating would automatically be offered lower interest rates from banks and NBFCs towards long-term loans; further strengthening their credit check! However, to best understand your current credit rating; and how to improve your ranking, you should consult a licensed credit ranking agency. In India, the Reserve Bank of India has so far licensed four such agencies; namely - CIBIL The Credit Information Bureau (India) Limited, which has the most influence and strictest rating policy; as well as three private agencies, Equifax, Highmark, and Experian, which were granted operating licenses in 2010.

If I want to improve my credit score, I need a reliable advisor - and so do you! CIRF Highmark is one of only four registered credit information bureaus in India; and the only agency of its kind catering to all segments from industrial, to micro financing, and retail.

Read above article useful information & knowledge for you.