HereÂ we believe in equipping our customers with the right information. An education loan is probably the first step that the student takes on his road to financial independence; hence we believe that a good understanding of oneâ€™s credit is important.
A credit history is a collection of all the pieces of financial information that relate to your life. It contains information on how long you have been maintaining your accounts, the limits associated with it and how good your payment history has been.
This is vital to future and current creditors as this shows the merit of the credit they advance you i.e. the probability that you will repay. Because you have handled your credit well in the past, is proof enough of your credit behaviour in the future. The credit report gives a snapshot of your financial life. This arms financial institutions with the information they need to decide whether they should lend or extend credit to you or not. Learning how to establish and maintain good credit will help you achieve your financial goals. Here is what you need to know: