Some people were asked the last time they checked their credit report. Less than 10% admitted to have checked it once in the last six months. Most of them confirmed they had not checked their report ever because "they didn't feel there was a need for it".Learn more
Monitoring your credit score is extremely important to ensure that your creditworthiness stays intact. And to make that possible your credit report or CIBIL report can be of great help.Learn more
In an effort to promote good credit behaviour the Reserve Bank of India has announced that individuals will get a free credit report every year. From 1st January 2017 every Credit Information Company is mandated to give a free credit report every year to individuals whose credit history is available. This report will be available in digital format. It will help them check their credit standing and motivate them to improve credit score. It will also help them verify whether the information in their report is free from errors.Learn more
Missing a payment can happen to anyone, unless you are a software programmed to repay every instalment. Don't let that give you sleepless nights; it is merely a human oversight. Lenders and underwriters, too, are human beings and they understand if you have been late once or twice. But if you have been late more than a few times, then be prepared to face consequences.Learn more
No one wants a poor score. But if we have been careless with credit in the past or owing to hard times if we were not able to meet our financial commitments, it can completely spoil our score. Some people may not give much importance to having a poor credit score because they are not looking for credit in the near future. But a damaged credit profile can create more obstacles, some of which don’t even involve borrowing.Learn more
Credit score - It can be an asset for some while a source of tension for others. It all depends on where your number lies between the range of 300 to 900. A credit score is derived from the information in your credit report which shows the various loans that you hold with different banks, your repayment behaviour, outstanding dues and other credit related activities. Good credit habits and timely repayments of debts lead to a good score. Before the banks consider lending money to the borrowers, they evaluate them on the credit score parameter to judge their defaulting risk. While a high score strengthens one's ability to obtain funds, a low score is a sign of trouble.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.