Former BSE Chairman S Ravi Guides on Crafting and Enhancing Your Credit Score

Author : Isha Jolie | Published On : 23 Jan 2024

In a bid to empower individuals in navigating the complexities of credit scores, S Ravi BSE, former Chairman , shares a comprehensive guide on enhancing financial well-being. Recognizing the pivotal role a credit score plays in shaping one's financial future, Ravi emphasizes the gradual and disciplined approach required for building a robust credit profile.

Drawing insights from a credit monitoring platform's reports, Sethurathnam Ravi highlights that the average credit score for Indians in the past year stood at 715. While deemed acceptable, there's room for improvement, considering the credit score as more than just a number – it's a financial passport that can either open doors to opportunities or restrict one's financial path.

A credit score, ranging from 300 to 850, serves as a snapshot of one's creditworthiness. S Ravi underscores its critical importance in various financial aspects, from mortgage applications to securing loans or credit cards. Building and maintaining a strong credit score, according to Ravi, demands strategic financial habits and a disciplined approach.

Examining the factors influencing credit scores, S Ravi BSE, points out key components such as payment history. On-time payments for credit cards and loans significantly enhance the creditworthiness perception. Credit utilization, the ratio of credit card balances to limits, is another crucial factor, with prudent management recommended to keep it under 30%.

S Ravi emphasizes the positive impact of a longer credit history and encourages maintaining a diverse mix of credit accounts. However, cautioning against opening multiple accounts within a short period, he advises vigilance to prevent negative impacts on the credit score.

In a proactive approach to building a strong credit profile, S Ravi recommends creating a budget, living within means, ensuring timely bill payments, and setting up reminders to avoid missed due dates. With insightful guidance, S Ravi aims to empower individuals to take charge of their credit journey, ensuring a secure and resilient financial path ahead.