Increasingly Indians are becoming aware of the importance of health. We can see a lot more individuals hitting the roads or gyms or going for various activities like Yoga and swimming to maintain their physical wellbeing. Just like physical health, one needs to manage good financial health as well. Just like one would sweat out to maintain physical fitness, one would constantly need to work on the varied financial aspects to be able to have an economically stable life.Learn more
It's important for everyone to know what is their credit worthiness. What is credit worthiness? How much responsible one person is for the credits he has taken. Credits are not just the loans one has taken but also the the use of credit cards one does. Credit worthiness is checked with all what one takes from banks which they do not currently owe. And need to pay later to the banks or the NBFCs.Learn more
Believe it or not, a credit score plays an important role in your life when it comes to shopping for financial products. When it comes to credit score, sometimes it is hard to understand how the rating works and how do the banks determine if they can provide you a loan. When you apply for a loan, you think the only thing which matter for getting your loan sanctioned is your incomes and gains towards the loan amount you are applying for. This is absolutely not the case! A good credit report can help you get your loan sanctioned in no time.Learn more
No one should ever have to go through something like bankruptcy. However, life is unpredictable, and when the bad comes to worst, then the only way out of a financial crisis is often through the declaration of bankruptcy. This can solve the problem to a large extent. But what about your credit profile?Learn more
Awareness among today's youth is unparalleled. Never in past the youth who have just started to work understood the importance of financial well-being so effectively. Their aspirations are to buy a property, a car and to take an international holiday. What is more important is their understanding that to achieve all this they need to be on right side of credit bureau.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.