Rajeev Gupta had a well-established business. Being the only child, he consolidated his family business with the support of his father.
Besides maintaining good ties with people, Rajeev had a good relationship with his bank. He kept a huge balance in his account and made big transactions, which made him a prominent customer of the bank. With the bank handling his account, he concentrated on his business.
With the passage of time, Rajeev planned to expand his business abroad and for doing so he needed a huge amount of money. He approached his bank, confident that they would finance his business expansion plan. However, he was in for a surprise when the bank rejected his loan application. The reason given for the loan rejection was Rajeev’s poor credit score. In fact, given his credit score, had he applied for a smaller loan amount, the bank would have refused that as well.
Had Rajeev been ignoring his credit health? Did his plans of expanding his business abroad end here? Or was he able to improve his credit score and credit health?
Though credit awareness is on the rise, a large majority of consumers are still unaware of their credit score/ credit history and its importance. In India, many people do not know about the credit scoring system and much less their credit score, until they attempt to buy a home, take out a loan to start a business, or make a major purchase.
A Credit Score is a three-digit number that denotes an individual’s creditworthiness. Credit Scores in India ranges from 300 to 900, irrespective of the credit bureau from which these are generated. A score of 750 and above is considered to be a good score. Credit scores are calculated by the credit bureaus in the country after taking into consideration several factors. Banks provide all the information of an individual to the credit bureaus to check the creditworthiness of an individual. With the information provided by the banks and other financial institutions, the credit bureaus calculate the credit score. Lending institutions check the credit report/ credit score and only those applications which meet the minimum credit criteria get assessed by an underwriter.
Unaware of his credit score and credit history, Rajeev had to face disappointment. His low credit score and poor credit history came in the way of his getting a loan for business expansion. Not only his bank, but other banks too refused to grant him a loan. Rajeev contacted many financial advisors in vain.
One of his business clients advised him to get in touch with a credit health improvement company. Till now, Rajeev had been unaware about the existence of credit repair companies that help their clients improve their credit health. These companies provide assistance to individuals and corporates having poor credit scores, helping them restore their credit health and improve their credit score. With timely assistance from a good credit repair company, Rajeev was finally able to improve his credit health and receive the funding he was looking for.
Credit awareness goes a long way in improving your financial well-being. Having a good credit score ensures the availability of funds in times of need and also lower interest rates.
Credit Triangle is a one-stop solution for all your credit and finance needs. We help you with credit health management, repair, and improvement.