Credit score has gained a lot of attention in last few years. The score which is a result of the complex algorithms run by the credit bureaus on the data available for an individual represents the credibility of the concerned person. In India the score ranges between 300 to 900.
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In current times, considering the lifestyle we follow it is highly recommended that everyone get a health check done regularly. The same rule applies to our credit health too; as a new year begins it is important that your assess credit situation and see if you are credit healthy or not. So how do you do you this? Below we offer you a discussion that can let you judge if you are credit healthy or not.
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Your credit report plays a big role when you apply for loans and other forms of credit. For instance, if your score is low, then you may not get standard interest rates on home loans, personal loans, etc. You may not even qualify for a loan in the first place if your score is too bad. However, does your credit report also affect your employment opportunities? Do employers check the credit reports of the candidates they interview for jobs? Let’s find out.
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Let’s face it, there is nothing wrong with sharing interesting things about your personal life on social media. When you travel to a beautiful location with friends or family, then you want to share snapshots on your Instagram and Facebook handle. Similarly, when you get a promotion at work or a new job in a bigger company, then you want to share this news on social media as well. However, is sharing personal information with others always a good idea? As you would have guessed it, the correct answer is “not so much”.
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Whether you want a loan, credit card, or even a new job in the banking industry, your credit score will play a big role. However, there are many things that can harm it easily. These include late credit card payments, high credit utilization, and credit report discrepancies. But what about comments like “settled” or “written off” in your credit report? Can these hurt your score too? The answer is “yes”, but to understand why that’s the case exactly, we need to understand what it really means.
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There are many advantages to using a credit card. For starters, you can buy things you need even when you’re in a pinch, and you can enjoy all kinds of discounts, perks, and cashback offers by using the right type of card at the right place. However, what happens when your credit card payment is declined for any reason? Does it affect your credit score? Let’s find out.
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Money Saved is Money Earned. We have been listening to this quote ever since we were a child, and there is nothing wrong about it. The money saved today or this month may sound a lesser amount, but cumulatively when checked, it will be a lot more than it appears today. Millennials today, however, and of different thought and believes in living today without looking at tomorrow and that’s how they see.
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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.
