TIPS FOR ENTREPRENEURS TAKING LOANS | Become a best Entrepreneur

-
○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.



FOLLOW ME..IF THIS POST PROVES YOU HELPFUL..

Comments

Post a Comment

Popular posts from this blog

How do alcohols affect living beings?

-
Image
DO YOU KNOW? How do alcohols affect living beings? When large quantities of ethanol are consumed, it tends to slow metabolic processes and to depress the central nervous system. This results in lack of coordination, mental confusion, drowsiness, lowering of the normal inhibitions, and finally stupour. The individual may feel relaxed but does not realise that his sense of judgement, sense of timing, and muscular coordination have been seriously impaired. Unlike ethanol, intake of methanol in very small quantities can cause death. Methanol is oxidised to methanal in the liver. Methanal reacts rapidly with the components of cells. It causes the protoplasm to get coagulated, in much the same way an egg is coagulated by cooking. Methanol also affects the optic nerve, causing blindness. Ethanol is an important industrial solvent. To prevent the misuse of ethanol produced for industrial use, it is made unfit for drinking by adding poisonous substances like methanol to it. Dyes are al
Read more

How ants Work together to do Construction

-
Image
ANTS DO CONSTRUCTION WITHOUT COORDINATION.. Leaf-cutter ants build super highways to transfer food and building material hunderds of metres without communicating with each other, scientist claimed that, in finding that could prompt rethink about how some insect communities organise themselves. It had long been thought that the ants organise megaprojects by communicating with one another, assigning specialist to remove debris. But, each ant seems to act alone, solving environmental problems such as removing as they are encountered.
Read more

Burning Process | How substances burn?

-
Image
Why do substances burn with or without a flame? Have you ever observed either a coal or a wood fire? If not, the next time you get a chance, take close note of what happens when the wood or coal starts to burn. You have seen above that a candle or the LPG in the gas stove burns with a flame. However, you will observe the coal or charcoal in an ‘angithi’ sometimes just glows red and gives out heat without a flame. This is because a flame is only produced when gaseous substances burn. When wood or charcoal is ignited, the volatile substances present vapourise and burn with a flame in the beginning. A luminous flame is seen when the atoms of the gaseous substance are heated and start to glow. The colour produced by each element is a characteristic property of that element. Try and heat a copper wire in the flame of a gas stove and observe its colour. You have seen that incomplete combustion gives soot which is carbon. On this basis, what will you attribute the yellow colour of a ca
Read more