Ananya was scheduled to travel to US for an assignment. She applied for a credit card specifically suited for use abroad but her application was rejected due to a low credit score. She shared her dilemma with her colleague Preeti who was also travelling and had applied for the same card. Preeti enquired if knew what was the problem with her credit score and if Ananya ever checked her credit report. Ananya was clueless!Learn more
It is never too early to learn the financial skills that will have a profound influence on your whole life. We bring to your table 5 money management tips to demonstrate how to handle money responsibly and achieve long term financial success.Learn more
Some of us have been in a situation where we have applied for a credit card as a fresh jobber, but found out much to our surprise that the application has been rejected. Sounds familiar? If the reason for decline is the lack of credit history, do not be too surprised. And instead of hitting the panic button let us see what you can do to remedy the situation.Learn more
Getting a line of credit, be it a loan or credit card may be a tad easier than it ever used to be, owing to a larger number of willing lenders as compared to earlier, but it also comes with a caveat. While banks and financial institutions do look forward to lending, they also look at lending to the right customer profile. One of the first things that a lender would want to ascertain is the creditworthiness of a borrower, that is the likelihood of the loan going ‘bad’ or the customer defaulting on loan repayment on disbursal.Learn more
As per a few surveys done in India the overall awareness about credit scores is pretty low. It is likely that the few who know about credit rating and its importance may still not be aware of what the scores mean or how to interpret them. It is important to mention here that credit scores are generally a number ranging from 300 to 900 but not always; so let us take a look at different scoring ranges and what they mean.Learn more
Globally, your credit score holds more relevance than you would imagine – it can be the deciding factor between your being able to rent an apartment or a house, getting a new phone connection, determining the premium you would pay on your insurance policy and in some instances, even getting a job. Closer back home, in India, credit scores are currently used predominantly in the banking and financial services (BFSI) sector, with lenders (banks as well as other financial institutions) evaluating your score before agreeing to extend a fresh line of credit to a borrower.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.