Building up a sturdy credit score is one of the most rewarding financial investments you could make. A good score makes you future ready for loans at any point in life. According to CIBIL, almost 80 percent of people with score of 750 points or above are always approved for loans.Learn more
Owning your own house is one of the best feelings in the world. It gives a deep sense of satisfaction and pride, and more than that- you save a lot of money in the long run, which you would otherwise have to pay in the form of rent. If you want to buy your own house but don't have the money for that, then getting a home loan is an excellent option. However, if you have a poor CIBIL score then getting one can be really though, and your options will be limited. In the best-case scenario, you will have to do with one that has a high interest rate, which isn't a good idea either. So, is there another way?Learn more
When there are scores involved in a screening process then there are good scores and bad scores. If you apply for an entrance exam then there will be a cut off score below which you are not likely to get admission to that college or institute. However it is important to mention here that each institute might have different rules regarding at which score they offer admissions and also it may vary as per the score. The same rule applies to credit score; the level at which you get a loan may vary from lender to lender and also as per the loan. So there is no single perfect score for getting a loan; the perfect score depends on a lot of external factors; some of which we discuss here.Learn more
Believe it or not, your CIBIL report can tell a lot about you. From your personal details to your credit history, it has a variety of information.Learn more
If you happen to take a quick headcount of people around you, you would find 9 out of 10 people using credit in some form or the other. Credit usage is omnipresent today and thus to have a good credit score is of primary importance. A good credit score is indicative of good financial health and opens up doors for you when you are in need of credit.Learn more
Credit Bureaus such as CIBIL, Equifax, and Experian keep up to date information about your financial activities such as pending loans, credit card payments, etc. So, if you have ever taken a loan in the past or used a credit card, then it is likely there is a credit report under your name in at least one of the most popular credit bureaus of India, even if you are not aware of it.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.