What Determines Credit Worthiness?

What a Credit Score Really Means

To start, the details for almost all loans that you look for will be determined based on your credit score. This is a number that can range anywhere between 300 and 850. The higher your score, the more creditworthy you are, since the score is said to predict the chances that you will repay a loan. A bad credit score is between 300-499.

There are several factors that go into the calculation of your credit score. They include your payment history on all accounts. That is, they want to know if you make your payments on time and if you pay more than the minimums required each month (especially on credit cards). Lenders will also look at your credit utilization ratio, which is the percentage of credit you have and how much you are currently using. They will want to know your length of credit history, longer you have been using credit, the better. And finally they will look at the types of credit that you use and any recent inquiries into your credit.

One other factor that goes into how your credit score is assessed is the legal end of things. Lenders will look into court judgments against you in the form of bankruptcies and liens on your income due to old debts. It is one thing in incur late fees, it is quite another to not make payments at all such that a company needs to sue you for the money. These sorts of histories are the biggest factors in a bad credit score.

Factors Other Than Credit

While your credit score is the number one element that will be used to assess your creditworthiness, a close second is your income and job stability. You can have a sterling credit rating, but if you have just been laid off or come off a string of unemployment creditors will be less likely to lend to you.

A general rule of thumb in terms of employment is the ability to show a solid income over a period of at least three months. You can do this with either paystubs or W2 forms. In addition, your income needs to be high enough to support the repayment of this new loan in addition to all other credit obligations you currently have. Therefore, you should make sure to write down a detailed budget prior to talking to a lender. This way you know how much you can afford and how much leeway you have.

What It All Means

Bottom line, your creditworthiness will be used to make a few important decisions. First, whether or not a lender will work with you in the first place. Many times this point is determined based on income. Even those with poor or bad credit scores can find loans if they have good employment. Next, your credit score will help to set the rate of interest. The lower your score, the higher the interest rate will be. Finally, the combination of both income and credit will determine how much money the lender will offer you.

The Easy Way to Borrow Money

The kind of loans one can apply for
In India, it is possible to apply online for short or long term loans. The money obtained this way can be used for various purposes, such as marriage, education, car, land or home purchase and so on. Loans generally start at Rs. 10,000. Make sure to pay maximum attention when you agree on the repayments period – you must make sure you can make repayments as promised.

Eligibility criteria
To obtain a loan online without any hassle, just make sure you follow the guidelines. Also, you need to meet the eligibility criteria. Before applying, the individual needs to gather all the documents required. The PAN card will usually be necessary, as well as Aadhar card. The client must provide an address proof. The electricity bills required are not always a substitute for this proof of address. As soon as all the documents are gathered, the client should scan these and send the copies online in the provided form. Lenders require to see each client’s credit score before they decide whether to approve the loan or not. In addition, borrowers definitely need to have a valid bank account, so the money can be delivered. Nationality and residency are also important matters here. Applicants need to make proof of their Indian nationality.

How the Aadhar card helps
Having an Aadhar card can help you obtain a loan on fair terms. The purpose of the project involving it was to secure everyone’s social identity permanently. A card with a unique identification number holding biometric data can easily and accurately provide proof of identity and residency. It’s the perfect solution for today’s technological advancements that have also made quick online loans possible.

Attract & Retain Talent to Feed Your Business Growth Strategies

What makes your company one that talented people would be drawn to work for? Intelligent talented people want to work for management they can respect and learn from in companies they can be proud to work for. Get this right and your company should have no problem attracting the right people.

Not everyone is prepared to make a positive contribution and any successful leader knows that they must not only add talented contributors, but also remove non-contributors. A good philosophy is to lead by preference and manage by necessity (sometimes even managing people out of the business).

It’s people that make a company and they can make it successful or unsuccessful. Good people are a company’s most valuable asset and those business leaders that recognise and leverage this grow more successful and lasting businesses. Your business coach can help you create the right culture.