Manage your credit
YOUR credit score can have a major impact on your life and finances. Everyone should take time to review, manage and boost their credit score.
Your credit score will not only affect whether you can get mortgages, credit cards and loans, it can also affect attainment of mobile phone contracts, monthly insurance premiums, opening of bank accounts, job applications and more.
Every individual has a unique credit score. It is a three digit number calculated based on the credit history from your credit report. A credit score makes it easier for individuals to comprehend their credit standing.
Five components determine the outcome of your credit score – payment history, length of credit history, credit limit utilisation, new credit applications, legal history trace.
In many instances of interactions with consumers by RAM Credit Information Sdn Bhd ( Ramci), an accredited credit reporting agency in Malaysia, consumers shared that credit reports can be a bit confusing as they contain a huge amount of data.
It is also sometimes difficult for an individual to determine which part of the data is considered important to lenders.
Nonetheless, a numerical expression in the form of a credit score can help explain how a person’s credit standing is categorised.
The credit score developed by Ramci ranges from 201 to 781. A higher score makes a consumer more credit- worthy. Generally, a score of 621 or higher indicates that you have managed your credit well.
When it comes to locking in an interest rate, the higher your score, the better the terms of credit you are likely to receive.
Your credit score is a key indicator of your credit risk, used by lenders to determine your creditworthiness at the time of any related applications.
Good credit management leads to higher credit scores, which in turn lowers the cost that you need to borrow. Living within your means, using debt wisely and paying your bills consistently and on time are smart financial moves.
Good credit management helps improve your credit score, reduces the amount you pay for the money you borrow and puts more money in your pocket to save and invest. It is always a good idea to make monitoring your credit score a part of your financial routine.
This will allow you to be better prepared to work with your credit standing when you are about to make major purchases such as buying a house, car or taking a loan to start a business. If you are interested to determine your credit score, you may request for a credit report from Ramci.
For more information, call 03- 2615 1191 or 03- 2615 1128 or www. mycreditinfo. com. my