A credit report is a report which has the information of an individual's credit information in detail. Credit score, all the credits that have been taken till date, the payments that have been made, accounts that have been closed, pending, ongoing, defaults, late payments, in short, all that has been from the day credit was issued till date including the hard inquiries.
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With greater awareness and understanding kicking in upon the credit bureau and credit profile, the habitants of metro cities must have heard the term inquiry. Further some may even have heard the two variants called hard inquiry and soft inquiry. Multiple questions like what are these inquiries, what is their importance, what role do these play in one’s credit profile keep coming up. Read on to address all the queries on these inquiries.
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Pankaj Parmar, a midlevel manager with a MNC applied for a personal loan. He got a shock when the loan application was declined. His new application with another bank also met the same fate. This got him to find out the reasons since he had the repayment capacity. He approached Naim Khan, his friend who works with a leading bank to get some help on this.
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What is a credit history? Any borrowing that is done by a person, has its records stored. When we say borrowing, it is considered as the borrowing that is done by banks or NBFC (Non-Banking Financial Institutions). The credits that are taken in form of loans or credit cards are considered the borrowings and are reflected in credit reports.
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The Indian banking system is expanding as more and more people are becoming a part of it. This in turn means more people are seeking loans to fulfill their dreams and aspirations; the lenders unlike before now rely on more objective ways of deciding whether to sanction the loan to an applicant or not. Thus the credit rating of the applicant is crucial whenever he/she applies for a loan. This is true for individuals whenever they want to apply for a loan but what about business owners?
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A big part of getting married is making financial decisions together. Once you get married it is prudent to realign your financial goals in a manner to meet your joint financial ambitions. For instance, you may be planning to take a joint home loan to build your nest together. However, dreams such as these may get derailed if your spouse’s credit score is not up to the mark. Read on, to find out more.
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Having a high credit score is a must if you want easy loans and low interest rates. However, if yours isn’t up to the mark, then you can take various steps to give it a boost. In this blog, you will learn how to create a 12-month comprehensive plan for increasing your credit score. We will divide the plan in four parts:
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You tend to make a lot of payments every month like power bill, phone bill, Loan EMIs, credit card payments, etc. Have you even given it a thought that, are any of these transactions getting registered towards my credit report?
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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.
