If one wants to have access to credit modern times they need to be creditworthy; lenders like to assess the creditworthiness of an applicant before they agree to lend to him or her. Whenever one applies for a loan the first thing the prospective lender does is check their Credit Report. Based on this and many other factors the loan would be sanctioned or rejected. Often self employed find it hard to build their credit worthiness as compared to those employed in regular jobs.Learn more
Of late credit scores have emerged as the single most influential factor that determines whether you qualify for credit or not. It wouldn't be wrong to say that credit scores shape the financial future of an individual. With good scores one can gain easy access to loans and borrowed funds. While with poor scores one can be barred from using a credit facility with a bank.Learn more
"Mistakes are a part of life. But it is the response to the error that counts." says Nikki Giovanni a famous American writer and activist. Quotes such as the above are meant to inspire the human race and encourage them to learn from mistakes and errors in life and treat them as stepping stones to success. But what if an error is not your fault? What do you do in such cases? The reason we bring this up today, is to tell you that if errors and discrepancies creep into your CIBIL report, it can have devastating consequences despite the fact that you had little to do with it.Learn more
Have you ever wondered how banks evaluate the loan applications and determine the eligibility of a candidate? Well, they use the credit report and credit score of the prospective borrowers to judge whether they are worthy of giving credit. The credit bureaus maintain a database of the borrowers with past repayment behaviour, based on the payment details received from various lending institutes. They use this information to calculate a credit score that ranges between 300 and 900.Learn more
"Give me one reason on why I should not check my credit report", retorted Ashi. No matter what she said Sid was not willing to hear her. "Bah! What a waste of time and money it is. You give me one reason on why you should check your report?" countered Sid. "One? I will give you five”, replied Ashi calmly. Here is what she said:Learn more
Any conscientious user of credit knows that one's credit score is of utmost importance in today's date. Without a high CIBIL score it is difficult to access any fresh line of credit. A good CIBIL score is therefore a prerequisite in today's world. Maintaining one's credit health not only entails making a continuous attempt at improving one's score, but also the regular credit checks. To keep a check on the credit report you must first know how to understand it. In this article, we therefore take you through the CIBIL report, to help you understand how it is to be read.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.