The cost of products like insurance and loans is greatly affected by risks. This is because a person with a poor financial condition is more likely to default than a person who has a high income. Similarly, if a person has a history of making late payments then also they are more likely to default than others.Learn more
If it were 1950s, something like "credit stress" wouldn't even exist. However, times have changed a lot today. These days, almost every single person takes some form of debt or another in their lives, whether it's credit cards or personal loans, home loans or payday loans, etc. However, this has made credit stress an increasingly serious problem for those who don’t have a good credit history and want to apply for a new loan.Learn more
As discussion around credit scores and their importance increases a lot of awareness is being generated among borrowers or potential borrowers about their importance and use. However still a lot of misconceptions and half-baked information does confuse and often mislead people. Thus it is important that correct information about what impacts the score calculation and what does not impact it be available to all users of credit.Learn more
In the modern world that we live in, it is impossible to imagine life without credit usage. Credit cards are indispensable in today's world. There is no disputing the convenience of such cards. You can use your card to buy anything from groceries to gadgets and reap rewards on your usage as well. In fact judicious use of credit cards can help you build a good credit score.Learn more
Have you ever wondered what would happen to your credit score when you die? Life is all about uncertainty and no one knows when the end is. So how to prepare yourself and your family in such situations? We have an answer for the same.Learn more
The importance of credit rating in current times cannot be emphasized enough. Though there are still many people who may not be aware about the importance of the credit scoring, the awareness about it is fast growing. Awareness about the significance of credit rating is not sufficient and it is essential that there is awareness about what goes into making a credit score good or bad.Learn more
By the virtue of being the first credit bureau in India, the credit scores colloquially are called CIBIL Score. The score given by any credit bureau is called credit score. There are four bureaus in India viz. Credit Information Bureau India Ltd (CIBIL), Equifax, Experian and Crif Highmark and all of them give out credit scores.
The bureaus in India rate an individual on a scale of 300 to 900. A credit score of 750 and above is deemed to be good and individuals in this score band will have faster access to funding. But a person with low credit score still may be able to get loans since the underwriting is based on various factors.
Your credit score shall not only impact the approval of loan that you apply, but also has the potential to influence the rate of interest beign charged. A lower rate of interest will result into huge savings. Therefore, it is highly important to be aware of the credit score.
Your credit report has primarily three sections. Personal information, details on all the loans and credit facilities that you would have taken and enquiries from lenders. Each of this broad information is critical to your access to credit and hence need to be looked at with care.
The credit bureaus assign credit score to an individual based on complex algorithms. Broadly, there are five factors that impact your credit score. They are:
One of the major reasons why one should check the credit reports regularly is a high error rate. As per a unique survey, one of four reports has errors. These errors can lead to severely impacting the credit score and diminishing the chances of access to loans at the time of need. To know more about the reasons why one should check score regularly read more from our blogs.
Unlike developed economies, where one has access to free credit score once in a year, people have to pay for the same in India. We at freescoreindia have resolved to extend free credit score for two reasons, first to bridge the disparity on availablity of free credit score and second to educate and spread awareness on this important aspect of every one’s financial life.
You can withdraw your credit report from any of the credit bureaus as many times as possible. This will not have any bearing on your credit score. However, the enquiries made by lenders can impact the credit score.