financial advisory service in india Archives - Business , Financial & Legal Consultant In India

When we go for financial advice, first thing we get is advice about checking the credit report. But what is credit report? And why is it so important? Let’s find
out!
What is credit report?
Credit report is the report of all your borrowings. It contains details about all
your current and past loans, credit cards. It sums up the entire details of your
life regarding loans and credit cards. It contains a 3 digit number ranging from
300 to 900 which is assigned by the credit bureaus. It is similar to grading of
your credit history as good, average and bad.
What is considered a good and bad credit report?
A good credit report shows all the positive feedback of your credit history. If
you have a score more than 700, then you are considered to have a good credit report. A good credit score mean that you have paid all you instalments timely.

However, less credit score ranges from 300 to 500. If you have a bad score
then it means that you have not paid instalments at proper times. If a person
has a credit score ranging from 500 to 700, then he has moderate credit score.

Why is credit report essential?
Credit report is essential if you want to take a loan or want to take
responsibility to pay someone else’s loan. The banks check that you have a
good credit score or not and accordingly they allow you to take loan. Let us
look at some points and understand why credit report is important.
 Approval for your loan is much simpler with good credit report as the
banks trust the person who has good credit score
 Lower Interest rates are available for loans
 You are able to negotiate better loan terms
 You can easily get best credit cards.
When you are co-signing a loan for you relative or friend, it is essential to have
a good credit score because the co-signer is responsible for paying the loan or credit if the loan borrower fails to pay. So this is very essential when someone
is co-signing.

Why it is important to check your credit report regularly?
It is important to check the report regularly because it is updated periodically
by financial institutions. There are various benefits of checking your credit
report regularly. Some of them are:
 You will always know the credit score so there is no need to worry
about.
 If the credit score is decreasing, you can always increase it by paying the
credits timely.
 You can correct the errors if there are any in your reports. This may
improve the score if your error is corrected.
Inference
As we can see how much the credit report is valuable in taking financial
decisions. You must consult a chartered accountant before taking any financial decision. These are designated people that will guide you to take better decisions. Maintain a good credit score and it will assist you in taking financial decisions like taking a loan etc.

BIATconsultant is providing financial consultant to small , medium as well as large enterprises since 2004 .

Investing is a tricky concept. It can lead you to huge business revenues.
However, if proper steps are not followed while investing, it can lead to huge
losses. It has the ability to completely destroy someone’s life if investing is not
done cautiously. Let us look at some of the mistakes which investors make that destroy their lives:
 Depending too much on the company’s health cover
There are some people who depend too much on the company’s health
cover. If a person is caught up with a very serious disease, it may
happen that the cost of the medication is too much. The bank will be
pay only a part of the patient’s expenses which can lead to huge
financial trouble. This results in huge financial loss and will eat away all
your savings. So it is better to have ‘personal’ health cover rather than
depending on company’s health cover.
 Excessive use of credit card and loans
Sometimes people are so involved in taking loans that they end up in
deep trouble. Their saving becomes nil and they become bankrupt.
People are attracted towards various schemes to buy things in low cost
EMIs and using credit card to pay for things. Excessive use and addiction
of these things may lead you into big debts which are difficult to pay
later on. So it is very essential to makes proper and judicial use of the
credit card and loans.
 Overspending due to social pressure
People have the trait to show off. This can be very dangerous
sometimes. People spend so much in buying big houses, big cars and in
weddings just to show off. They do it to feel superior over the others.
This can lead to the downfall of a person and make his finances go down
sharply. So we must invest in only those things which are productive in
future or in those things which we need. Spending just to show off is
stupidity.

 Heavy spending problems
Some people are so much addicted towards spending that they do not
even calculate the future savings. If you spend on unrequired things,
then one day you may have to sell things you need. This is very essential
to see whether buying something is valuable to you or not. If it is
essential, then only we must buy it, otherwise not as it may drain all
your savings.
 Attracted toward free advice
People have the tendency to get easily attracted towards the free
advice. In India, everyone has an advice for you. Even the person who
doesn’t have any knowledge about a certain profession will have advice
for you. These advices may cost you deeply. So, it is always better to
take advice from the professionals.
As we have observed that there are certain mistakes which investors make
that destroys their lives. So it is better to have some precautions while taking
an investing decisions or you will fall into dept. Advice must be taken from
professionals like chartered accountant who will give you the best advice
although every advice is subject to market risk. But mostly they will show you
the right way and process to invest.

Consult BIATconsultant to get best investing guide for your business .

Tag: financial advisory service in india

WHY IS YOUR CREDIT REPORT IMPORTANT?

BRUTAL MISTAKES WHICH INVESTORS MAKE THAT CAN DESTROY THEIR LIFE