You need a high cibil score to get a loan easily and that too at an affordable interest rate. However, how high does it have to be? And what about the highest possible score i.e. 900? Is it even possible to achieve that? In this blog, we will address all these questions.
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The year 2018 is about to end. This is the time when most of the people take a stock of how the year faired for them and what would they want to do in the following year. Learning from the mistakes and errors in the current year and making meaningful resolution for the coming year is one thing that is followed by a large population. While money may not be everything but fact is that there is a lot of importance of money in our lives. Hence there has to be a check list to evaluate how the year faired on this important aspect and what we should be doing in the coming year.
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Parents want their kids to grow up into a responsible individual. In this endeavor, they try to provide all kinds of education and guidance. Their constant direction leads one to lay the foundation of a successful career. Another thing that the parents want is that the child should be capable to manage his or her finances. And a considerable amount of effort goes into this important facet as well.
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The statistical value that gets assigned to an individual by the credit bureaus is mystifying. How did this came into existence and who decided to assign a score that would be deciding factor on a loan application? Every borrower must have had similar questions crossing the mind as and when the request for a credit facility that would have been applied for with a lending institution.
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For most part of our adult lives, we find ourselves worried about finances. After all, there are million things to take care of, and even after working hard, you may find it difficult to achieve financial stability. You may be telling yourself that financial stability can be achieved when you earn a higher salary or simply when your cash flow increases. The truth however is you can achieve financial stability even with your present income. Here are five ways in which you can assess your financial stability.
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As the famous saying goes, "nothing is perfect under this sun". When it comes to the credit score, it means that one would never be able to attain the perfect score of 900, if the saying was to be believed. While attaining perfection on the credit profile still may be doubtful, but one can definitely get to a point where the scores will be perfect for him.
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You must have read so many articles saying why loans have made life easier? How to get loans at a better interest rate? How can one apply for a loan and not get rejected? How are credit score and credit report related to loans? What is the credit score or credit report? All this question lead to a catch 22 situation. A credit score is established when any of the credits are taken. Credit here had both, credit cards and loans than one may have applied for. But, a person can get a credit only when they have a credit score! So it’s a little complicated here!
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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.
