Discuss the importance of a good credit rating and describe

Discuss the importance of a good credit rating and describe the steps one must take to establish and maintain a positive credit history.

Solution

Good credit rating is important for taking loan. Either loan application is rejected entirely or one is charged higher interest rate on loan for bad credit rating people.

One must pay all dues (credit card,loan installements,etc.) on time, take minimum liability, settle any outstanding dues and have that settlement properly notified to the originator and credit rating team.