Factors you should remember to lead a tension free & financially fit life.

Let us think of a situation where, for example a person has taken a loan, spent it and failed to repay it on time. After 1 year the person again applied for a loan for a trip to France with his beloved wife. But this time the bank refused to sanction the loan. This situation can easily shatter a person’s dream and similar situations are happening everyday in various parts of the world. But people often overlook few factors which are very important in deciding one’s future. Whenever we get a sum of money we spend it in an unplanned way. But the fact is wealth comes when money works for us and to make it work we must take care of some basic factors which will really help in judging where we stand and what we should do, to lead a tension free and hassle free financial life

Credit Report

It is one of the most important factors one should take into account before a fresh loan application. As per the federal law one can get a free credit report every 12 months form each of the three national credit reporting companies. This report is a snapshot about one’s creditworthiness and it will tell how much a person is eligible to get a loan .Online facility is also there and annualcreditreport.com is such an authentic online source.

Timely payment of Bills

This factor must be always taken care of as failure in paying the bills timely can easily hamper or lower a person’s credit score. If a person cannot pay the bills timely due to work pressure or lack of time it is advisable to go for automatic payment modes available in almost all the Banks. But there must be enough amounts in the account to avoid overdraft fees.

Factors which determine your credit score

Timely payment of bills: Late payment always will lower down your score. so it must be always avoided

Outstanding debt: If the amount of debt is close to the credit limit then it is regarded as a negating factor and your score will come down. So such a situation must be avoided to improve your credit score.

Duration of credit history: A short credit history is always a negative factor in deciding a credit score, but it can be balanced through timely payment.

Number of new credit application: If you have applied for too many accounts within a short period of time, it will act negatively in deciding your credit score.

Types of credit accounts: The credit scoring models often consider the number & type of accounts in deciding the score. If your account is a mix of installment loan and credit card account then it can improve your score.

You can yourself improve your credit report:

It is a dynamic system introduced by the federal Trade commission through which a person can himself/herself improve his/her credit report by correcting the errors. You can directly go to their website (www.ftc.gov) to do the same.

Terrorism: adding fuel to the fire of global financial crisis

India, despite of many internal problems is rising as a major power. Financially the potential of India has gone considerably high. But the recent terrorist attack in Mumbai, the commercial capital of India, not only shook the whole world, but also gave this rising economy a major blow. The series of deadly attacks in Mumbai on Thursday, which continued for around three days, forced the National Stock Exchange and the Commodity exchange to close down. So it is just pouring fuel in the fire. The whole world is already traumatized due to the global financial crisis and this event literally accelerated the situation in India making it even more worse. The Reserve Bank has already closed the bond and foreign exchange market. The Indian market is a paradise for the foreign sellers of Indian assets. But this situation has resulted in steep fall in rupee and gave a massive blow to the market confidence. The risk premium of the major lender bank, The State Bank of India rose considerably. Mr. Joseph Tan, the chief Asian economist in the credit Suisse, Singapore has stated that in this present global situation, the recent attacks in Mumbai created negativity in the minds of the foreign investors. This is quite obvious as people from all over the world suffered and many key personnel from US, Germany, UK, and France etc have witnessed the incident and many more died. Its also being predicted that when the stock market will open in India, it will open considerably down as compared to other Asian stock markets. The rupee closed Wednesday's trading at 49.48 per dollar. Now it figures among the weakest currencies in Asia along with the Indonesian currency and Korean currency, which have dropped by 20% against the dollar. The foreign investors have already withdrawn dollar 13.5 billion dollar from the Indian stock market compared with a withdrawal of 34 billion dollar from the South Korean market and 22 billion dollar from the Japanese market. Similar situation with a much higher intensity was earlier faced by USA following the 9/11 attack on the World Trade Center. If we look into the pattern of attacks we will find that the terrorists always attacks major points which is directly connected with the trade ,commerce & finance of a country, in order to cripple a country financially. Tourism in India attracts huge revenue and throughout the year flocks of foreigners come to India. Thus these attacks in major international luxury hotels gave a massive blow to the tourism industry in India.

It is a fact that when someone is trying to develop himself/herself, others will try to destroy him/her. This is the situation which most of the major powers in the world are facing. This situation will definitely cool down and everything will become normal and we will forget everything. Nowadays most of the discussion revolves around the global financial crisis. Banks and financial institutions are blaming the governments, the government is blaming them for their faulty policy, and we are blaming each other and everyday finding new theories to solve the crisis. But terrorism is another major factor and if this factor comes to the forefront, then no theories will work, no financial analysts and economists can solve it. But inspite of all these we are overlooking this major problem which is preparing itself hard to come to the top of the list. As a result the root problem is remaining same, preparing itself for a next attack. So its enough. Enough we have tolerated the evil intensions. So lets come together and fight this evil because next time it can happen anywhere and we are not safe at all and if it happens again then the crisis which the whole world is facing, will never come to an end.