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As we all are aware of the different criteria of the credit report, many of us may not know the concept of a red flag. What is Red Flag? Which are types of red flags? How does it affect? How to remove them from the report? We shall discuss all these points today in this article along with a detailed description of each point.
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If you have a poor credit score, then it’s certainly a cause for concern, there is no question about it. This is because a low score makes it really difficult to get loans at attractive interest rates, if you are able to get them in the first place that is. You can’t also increase the limit on your credit cards if you want. Plus, your stress levels increase as you become aware that you may struggle if there is a financial emergency and you need a personal loan or some other loan on an urgent basis.
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Building a good credit score isn’t easy. There are all kinds of things you need to keep in mind if you want to achieve a score of 750+ which is considered the best (with 900 being the maximum score that you can achieve). One of these things is paying your credit card bills and loan EMIs on time. This is why, if you are failing to pay your home loan EMIs on time, or worse, not paying all, then you can face some really serious problems.
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Time as they say heals everything; dealing with the philosophical aspect of this belief is beyond the scope of our discussion so we will focus only on the impact of time on credit score. Credit ratings are all about how one has dealt with their debt in the past; based on the credit history lenders try and judge the behavior of the borrower in the future.
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Credit score management can be a tricky subject for many. This is because there are many factors that can affect your credit rating. These include loan repayments, credit utilization ratio, credit variety, discrepancies in credit report, etc. However, it’s credit cards that often play the biggest role in score calculation. This is because there are millions of credit card users in India but there is a lack of awareness about their usage. For instance, did you know that failed credit card payments can have an adverse effect on your credit score?
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To determine how long it will take to get your credit score up to 750 all depends on what the score is to begin with.
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If you have ever applied for a home loan, then you know how hard it can be at times to get one. However, there are many different things that you can do to facilitate the process and get the approval faster. One of these is getting a co-applicant to apply with you.
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The 3 digit number on a person's credit report called the credit score can have a 6 digit impact on their financial lives.
Freescoreindia provides people with the tools required to understand their credit profiles and unlock the power of their credit score.
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.