A person should be cautious of their scores before beginning his/her career. It widens a lot of financial options throughout his life. The lenders will easily be convinced to offer you loans with the best interest rates. A good credit score ranges between 750 to 900. And for a newbie, who has no credit history, the credit score is usually -1.
A newcomer generally has an education loan to be paid. So the rational approach would be to save some of the initial salaries to pay off the debt, so that it doesn’t paint your reports red.
It is always a clever strategy to first tag along a family member with good credit score to become your co-signer. The banks would be convinced to offer loan when they see a creditworthy person together.
Also a good practice is to get a credit card. Secured cards and student cards can easily be availed by the fresher.
Q1. Why is it important to improve your cibil score?
Ans. A good credit rating widens your financing options and you could avail loans effortlessly. This will help you to reach your financial goals swiftly as the hindrances are getting eliminated. The lenders seeing your history could be convinced to offer you better loans with low interest rates. And as a fresher, an individual should play very mindful and always try to not default any payments so that the credit rating is not hampered.
Q2. What is considered a good credit rating?faq1
Ans. A good credit rating ranges from 750-900. Anything above 750 gets the bank to think that you are trustworthy and credible toward your payments. And a score less than 750 make an individual sound risky to the lenders.
Q3. How long does it take and how to improve your cibil score?
Ans. For a newcomer who has no past credit history, the score is usually -1. And on a normal pace till 6 months, the score is 0. So it takes a fair amount of time (almost 18 to 36 months) to build up a constructive and trustworthy score. But by considering some points and being mindful you can achieve a satisfactory score in less time.
There are many more practices for a fresher to follow at http://www.loankuber.com/content/cibil-score/credit-score-suggestions-to-freshers/. You guys should give a read if you are just on the verge of creating your scores.
