It's no secret that having a bad credit can create a lot of problems. You hear about it from your friends, relatives, and even acquaintances. However, it's possible that you don't know exactly how does it impact your life. If that's the case, this post is for you.Learn more
Often people may discover about their dismal credit scores when their loan application is rejected or they are unable to get a credit card. A credit score above 700 is thought to be good and anything below that might raise problems for the applicant who is seeking credit.Learn more
In an ideal world, the people who take loans would repay them in the right manner and within time. However, in the world we actually live in, people take personal loans, car loans, etc. and default, or use credit cards only to end up with a high accumulated debt which puts them under a tremendous financial strain. To limit such scenarios, the concept of credit score was introduced.Learn more
There are several factors that impact your credit score. Even if you on your part think that you are doing everything right to keep up a high score, errors and discrepancies can impact your score otherwise. Because of the large amount of data and information that is exchanged between lenders and credit bureaus every day, it is not uncommon for errors to enter your report.Learn more
It is always good to have your financial life sorted. If you pay attention and manage your finances responsibly from the beginning you will have nothing to worry later in your life. The day you get your first credit card or your first loan, you will find a place in the credit bureau records. They keep track of all your payment details and the way you manage your debts.Learn more
Saving big bucks is every one's dream. Each one of us, being part of the large middle class segment I can say that with a hand on my heart, tries to do little things that lead to savings.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.