The two most important financial indicators that are used today in the loan approval process are the credit score and the credit report. While both these metrics are used to gauge a person’s credit worthiness, there is a big difference between the two.Learn more
If you are a financially conscientious individual, you may already know that your CIBIL score will have a large role to play whenever you apply for a fresh line of credit. But what you may not know is that a prospective lender does not stop at one's CIBIL score. It is the details of the credit report that are scrutinised to find out whether you are creditworthy.Learn more
In the modern world that we live in, credit is used universally. You are rarely likely to come across people who do not using a credit card or two or servicing a loan. But much as acceptance of credit increased over the years, the need to maintain a high credit score is something that we Indians are yet to understand and implement. Even though there is a large amount of information available in the public domain about credit and credit scores, there are some myths that even the financially conscientious have about the CIBIL score and CIBIL report. Here are some common myths that we try to debunk today.Learn more
Dilip Doshi still shudders remembering the day when he agreed to sign as guarantor to an ex-colleagues personal loan application. Little did he know that in doing so he was risking his own credit health. When his colleague started missing payments, the bank approached Dilip to repay the debts as he had guaranteed the loan, something Dilip was not prepared for. Even after selling the principal borrower's assets to recover the loan, Dilip had to shell out over a lakh of rupees to settle the loan completely.Learn more
In the modern world that we live in it is nearly impossible to find someone who is not servicing at least one or two lines of credit. It will be no exaggeration to state that we live in a credit dominated world. It is therefore important for one and all to know about his credit score. Although there is no dearth of information available in the web space about credit score and the need to maintain a high score, there is a misconception about people that there is only one credit score.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.