TIPS FOR ENTREPRENEURS TAKING LOANS | Become a best Entrepreneur

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○There are downsides with an entrepreneur and most of that revolves around unpredictability of work, money etc. Entrepreneurs typically have it tougher from lenders, most of which revolves around unpredictably of work, money, etc.
 However, fundamentals to getting a good score are predictable. Good credit scores, given all other parameters, ideally translate into competitive rates and higher santion limits. Here is a list to help you.


1)PAYMENTS

 Missed, delayed payments have a direct coorelation with a negative impact on scores. Pay dues on time, everytime and pay up the promised amount. This translates into racking up a good score. Set reminders for Equated Monthly Installment payments,  so you don't get mauled by late payments.

2) CREDIT PORTFOLIO:-

 A plethora of unsecured personal loans is often viewed negatively. Diversification of credit is always a positive in the credit scoring company. All other customer Paramaters being equal, it has been observed that customers with a mix of credit, such as education loan, credit card, secured loan, etc, tend to be less risky. Debt is essential but do build up your financial resilience slowly and steadily.

3) CREDIT UTILISATION:-

 Restriction is the panacea The more you are able to restrict your credit usage as per the alloted limit, the better it is for your credit score. A good math to remember is the 30% rule, try to remain within that upper limit in  terms of credit utilisation

4) REVIEW, MONITOR YOUR SCORE:-

   It is extremely easy to neglect one's score because it is not one of those  "go to " numbers, like a credit card  balance or bank balance. Check your score regularly to be in control. It will tell you where you stand currently in the eyes of the lender and if that upsets you, you can always initiate corrective action. It also gives you the power of knowledge when dealing with institutions; you are not blindsided by less than favourable loan terms.



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