So, you had a rough month and couldn't catch a breath. Now that things are in control, you reflect on the events that took place in the recent past and realize you forgot to pay your credit card bill. Now, apart from the thought of paying a fine, another thing that's likely to cross your mind is:Learn more
A personal loan can help you manage your small debts; help you manage a marriage or any other sudden circumstances. This type of loan falls in the category of unsecured loan, as one does not have to keep collateral security to get the loan sanctioned. Because of no collateral in place you will need to pay a higher interest rate as compared to other loans that are available in the market.Learn more
So, after spending years in college, completing multiple internships, and appearing for multiple interviews you finally grab your dream job. You feel on the top of the world as if all your wishes have come true. However, little do you know that there are several financial challenges ahead of you that you need to overcome. These are:Learn more
Before we look at the impact of debit cards usage (if any) on the credit score, it is important to understand the difference between debit cards and credit cards. Debit cards are linked directly to the savings account of the customer; thus when a debit card is used the amount is directly debited from the account that it is linked to. There is no credit extended to the user and the amount that can be used is dependent on what the customer has in his/her account or the debit card usage limit.Learn more
What is a credit score? Ever heard of it? What's in it for me? Is it really necessary to have one? I have not encountered a situation or need where a credit score will play a role. Why should I bother? This is the perception of maximum people who don't have any idea about cibil score and its importance.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.