Let me tell you that Credit Report and Credit Counselling both have their own importance. It is better to understand both of them properly.
SCORE V/S CREDIT COUNSELLING
Ever worried about your
credit situations? Do you feel burdened? Are you unsure about the financial
future? Our financial decisions are affected by many factors including our
salary, regular expenses and spending habits, etc.
Today we live in an era
where purchasing has become must which lands you in troubles by the end of a SALES
season. The use of plastic money (credit card) worsens the situation. We spend
the money without even considering the affordability and our financial situation.
The present spending
affects a personís future borrowing abilities and their reliability to repay.
To unburden yourself of
unnecessary financial constraints you must understand;
What is credit counselling?
What is a credit rating or report?
About Credit Counselling and
Credit Counselling is the service of analysis of an individualís credit health, identifying the deficiencies and preparation of an action plan for improving credit behaviour taking into account the financial profile of the individual.
Credit Counselling is the potential support on the matters regarding consumer credit, money and debt management.
Credit counselling is the financial education of an individual to help them avoid financial shock and have better management of their money.
Credit counselling involves a counsellor and a customer, discussing the financial situation of the customer, analyzing the risk and liabilities and preparing a detailed plan of action for improving financial situation of the customer.
About Credit Score and
A credit rating or a credit
score is the assessment of the credit risk of an individual. Credit score is
provided in the form of a number between 300 and 900.
A credit score is the
analysis of a personís credit history in order to assess his ability to repay
and estimate the chances of default.
It is the assessment of a
personís credit reliability on the basis of several factors. This rating is
generally done by a central agency.
In India, there are four
credit bureaus providing credit report and credit score of the borrowers viz.
Experian, CIBIL-Transunion, CRIF Hi-Marks and Equifax.
What should one opt for
resolving his/her financial crisis? The answer depends on a personís needs. The
credit report of an individual is a detailed record of his/her past financial
and situation and gives a numeric assessment of future reliability.
A credit report may inform a person how
bad or good his/her financial situation is, but it canít suggest a plan of
action for future. It just tells you how much you can/canít afford. It just
provides the raw information and a composite score without any further insight.
Credit counselling, on the other hand, is a
detailed analysis of a personís current financial situation and preparing a
plan of action for the future. There are multiple options available for credit
In most cases counselling
services are offered by expert agencies. They assign you an expert who analyses
your financial condition and offer plan for managing your debts. In some cases,
the counsellor may deal with your creditors on your behalf.
It is always beneficial to
go for credit counselling because:
It presents a detailed analysis of an individualís financial
A plan of debt management is prepared for the customer
Suggests ways to minimize interest outgo
Suggests consolidation of multiple loans into one single loan
amount payable monthly, wherever warranted
Suggest measures to manage debts smartly
Helps in improving credit score
The customer gets professional counselling and gets practical
suggestion to deal with financial issues.
If an individual follows the
tips and measures shared during the valuable Credit Counselling Service, the
credit score will eventually improve, resulting in relieving you of the burden
of unnecessary debts and other financial liabilities.
Even if you do not need a loan facility in the immediate future, it is always better to carry out a comprehensive analysis of your credit health periodically in order to remain ready for future credit requirements and improving the financial fitness in general. Antworks Money credit counselling service takes a dual pronged approach by creating a technology backbone with artificial intelligence at its core along-with human interface by way of counselling session with an experienced analyst, thereby providing the best possible solution. Thus, it is a good decision to go for the Credit Counselling Services offered by one of the most reputed financial companies in the country like Antworks Money. At a very nominal charge you can apply Credit Counselling Services online 24×7 from the Antworks Money portal. Explore www.antworksmoney.com to learn more about the company and services.