Credit rating, though it is often available for a whilst, is becoming popular quite recently. Yet, a big chunk of this populace will not learn about fico scores or even the undeniable fact that they usually have one.
Abruptly, 1 day, whenever trying to get a loan, the lender tells them their credit rating is low and that their application for the loan happens to be refused because of that.
What are the results when you’ve got a credit score that is low?
It means that you are a risky customer and banks are usually not willing to give you a loan when you have a low score. a credit rating is based mostly as to how well you have paid back your past loans, you have taken and how much of your income goes in repaying loans whether you have defaulted or pre-closed any loan, what types of loans.