Let me tell you that Credit Report and Credit Counselling both have their own importance. It is better to understand both of them properly.
CREDIT 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 person’s 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 its Importance
- Credit Counselling is the service of analysis of an individualÂ’s 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 Importance
- 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 personÂ’s credit history in order to assess his ability to repay and estimate the chances of default.
- It is the assessment of a personÂ’s 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 personÂ’s 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 canÂ’t suggest a plan of action for future. It just tells you how much you can/canÂ’t 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 personÂ’s current financial situation and preparing a plan of action for the future. There are multiple options available for credit counseling.
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 individualÂ’s financial situation
- 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 24Ă—7 from the Antworks Money portal. Explore www.antworksmoney.com to learn more about the company and services.