[True or False #1] What you need to know about ‘Individual Credit Rating’


When you have a low credit rating, you are limited by unfavorable financial conditions. For example, you will find it difficult to apply for a personal loan at financial institution. Even if your loan application is approved, you may be obliged to pay a high interest rate for it. Of course, your credit limit is to be lower than others. For more convenient and economic ways of financial transactions, credit rating is what you really have to care about.

There are some commonly misunderstood things about individual credit rating. Let us do some ‘True or False’ exercises, to check how well you are aware of credit rating information. It would be a good chance to find out what you have missed out so far.




Low income equals to low credit rating?

[FALSE] Although you are a low-income earner, you can have a high credit rating. If you manage your credit on a sound basis, your credit rating will be upgraded. In contrast, a high income earner may have a poor credit rating, if he/she often makes overdue payments for interest rate and credit card transaction.


‘Cash ONLY, for a higher credit rating?

[FALSE] If you never make transactions by credit, there is no way to assess your credit rating. When making transactions in cash only, who can measure your credit rating? No one. For your credit rating to be evaluated, you need to show that you are making transactions by credit.


Maintaining your credit rating while not making credit transactions?

[FALSE] Without making credit transactions, your credit rating cannot remain same. To maintain your credit rating, you should regularly make credit transactions. This is because individual credit rating is determined by various criteria including credit transaction period, personal loan record, and credit card usage.


Your credit rating is influenced by that of your spouse?

[False] Your family members’ credit rating does not influence your credit rating. ‘Your’ personal information is solely used for credit card issuance, regardless of other personal information by your family members.




How many things have you wrongly recognized? I will bring some more True or False exercised for tomorrow. Keep your eyes on our blog post to pick up misunderstood things that you have been unaware of!



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