A credit score can be explained as a 3 digit numerical representation of the creditworthiness of an individual. It lies between 300 to 900, the higher the score, the better a borrower looks to potential lenders & banks Rating Credit score is as follows:
|Grade of Cibil||Points from & to|
|Excellent||800 – 850|
|Very Good||740 – 799|
|Good||670 – 739|
|Fair||580 – 699|
|Poor||300 – 579|
The Credit score is determined by 5 main factors which include previous payment history, total amount owed, length of credit history, types of credit & new credit. On the basis of Credit score, the lenders decide whether to offer loan to the consumer or not & if yes at what interest rates credit limits.
Not only banks but other organizations such as mobile phone companies, insurance companies, landlords & government departments rely on Credit score to judge the trustworthiness of consumers in regards to financial status.
All the individuals are assigned credit score on the basis of the financial Status but -1 score will be given to the person who does not have any credit history. In case the person is having a credit history of less than six months, he will be assigned 0 Credit score.
It is very important to check your Credit score, time to time as it keeps you updated with your financial health.. Let us know how you can check your Credit score online without charges:-
- 1) 1st of all you need to visit the Official website, www.cibil. com/Credit score.
- 2) Next you need to click on “get my credit score” option.
- 3) You have to fill the entire information like name, address, valid email id, contact number.
- 4) After entering all the requisite details, click on the submit option.
- 5) The credit report will be sent to the email id of the applicant.
The Credit score is very important in every one’s life as it is the deciding factor of many important things. Which include in-
- 1) Loan Approval.
- 2) Approval of Credit Card.
- 3) Strong bargaining tool on various charges involved in sanctioning home loan procedures.
- 4) Negotiation on Interest rates.
- 5) Better deals offered on home loan insurance.
To get a personal loan, the applicant should have a credit score lying near to 750. If the credit score is lower than 750, the consumer will have personal loan but at higher interest rate.
Let us discuss some points which help you in maintaining a good credit score:-
- Keep an eye on the Credit utilization ratio.
- Always apply for a longer period of loans that will have small EMI installments.
- Avoiding Multiple Debts at one point in time.
- Track your CIBIL or Credit report for any mistakes & rectify them as soon as possible.
- Try to have mixed credits such as secured & unsecured as well as longer & shorter durations.
- Maintenance of old credit cards.
- Timely payments of credit cards & EMIs.
- Avoiding unnecessary loan inquiries.