Credit score

Some hacks to get a good credit score

Building a good credit score is very important. For making any investment, having a good credit score is a must. Let us see how a regualr cibil score check can be helpful :

1)Timely payment of bill :
Of course, this is RULE-1, A convenient payment is considered to be a must.
2) Credit Utilization: Again, the ratio has to be the lowest. The best option can be using different payment options
3)Try not to exceed your credit limits as this can also affect you in turn.
3) Closing the old card may not be a good option. You will have to restart with the entire process.
4)A proper and regular check of your credit report is a must.

So, get going and start your journey.

Continue Reading : How To Improve Your Credit Score: Our Favourite Hacks

Avoiding Common Mistakes in terms of Credit Score

Maintaining a good credit score is very important nowadays if you want to avail loans and credit cards of your choice without getting rejected. But borrowers should be aware of how they can maintain a good credit score and what mistakes could harm their score. There are certain mistakes which an individual needs to avoid if he/she doesn’t want to affect their credit score. Like-

1) Make sure you make your monthly credit card bill payments always on time. Not only credit card bills, but you should also pay your loan EMIs on time.
2) Do not over-utilize your credit utilization ratio, which means don’t make a mistake and use more than what you have.
3) Don’t apply for too many loans or credit cards at one time.
4) Always check your credit report to avoid any error in it if it has.

Keeping all these factors in mind will help you to maintain a healthy credit score, which would help you to secure loans in a hassle-free manner.

Continue Reading : How To Avoid Five Common Mistakes That Could Affect Credit Score

The Thin line of gap between Credit Score and Credit Report

Checking Credit score is a good financial habit, that one should follow like a ritual. A credit report is like a report card that depicts all your banking transactions, including borrowings and prepayments. A credit score and credit report are two different things; a credit score is a numerical figure that derives the credit report’s results through a three-digit number.

Further, it depicts your financial status through a three-digit number on the scale of 300-900. The credit score and credit report are maintained by credit bureaus that set guidelines for the credit scores and also classify your credit score into good, bad, or average. A good credit score is a score above 700. It is a result of the timely payments made by the borrower.

Why is credit report important?

A credit report is important since any lender or lending institution checks your credit report before lending you a loan. This is required, because lending credit is a risk-taking factor, and thus the authenticity of the borrower must be kept in check. A good credit score, therefore, makes things easy, as stated:

It can help you grab easy and instant loans and credit cards.
Funds can be borrowed at lower interest rates.
Better loan terms can be asked by the borrower.
Best deals and offers are provided by lenders.

Thus, the above-mentioned points highlight the benefits of a good credit score, which can primarily be maintained by keeping a constant check on it. There are several options available that can help you check your credit score or credit report for free.

Continue Reading : Invariable relationship between Credit Score and Credit Report

Truth’s about Credit Score

A credit’ score is a mirror to your financial health. Maintaining a good credit score is an essential factor that can boost your credit health. You can assure your credit health by knowing the below mentioned:

Avoid too many inquiries: It is better to avoid too many queries at the same time. This usually happens when people apply for a loan. In the process of application, some of us tend to enquire form multiple Banks about the sam loan and thus apply at various places. This indeed affects your credit score, since it shows you financial thirsty, and creates an impression that you are probably running out of funds. Even two inquiries at the same time are like ‘too many’ things on a plate.

Know why it happens: This happens because every time you apply for a loan application, lenders go through a hard inquiry of your financial history, which reduces your credit score by 5 points. Multiple investigations by lenders mean multiple reductions, thus credit score decreases. It’s better to research on your own before opting for a bank, instead of applying at various places.

Research well: Further, a loan or credit card application often shows NA or NH. However, there’s nothing to panic about because this means that you have no credit history for the last 24 months, or there is not enough data to derive your credit score.

So, it’s better to research and know it all about your credit score, because half knowledge is a dangerous thing.

Continue Reading : 3 Strange But True Facts About Your CIBIL Score

Learn about Credit Score

A credit score is three-digit numeric figure that depicts one’s financial position. Cibil Score is evaluated on the basis of criteria decided by three Bureaus -Equifax, Experian, and Transunion. However, these bureaus are governed by the Fair Credit Reporting Act (FCRA).

A credit score can be checked through any Bank, Credit Card companies, or Credit Unions, that provide a free credit report. The score lies on a range of 300-850, and a score of 700 and above is considered a good score. A good cibil score ensures bank that the loan borrower is reliable, and a bad credit score could indeed make it difficult for the borrower to borrow funds.

The credit score is, however, impacted by certain reasons that include repayment history, credit utilisation, credit history, and credit applications. These factors are constantly undermined, and thus a credit score can change anytime. Maintaining a good credit score is thus an essential means to manage one’s financial reputation. It can be maintained by paying regular bills, most importantly of the credit card, utilising credit efficiently, and by avoiding over enquiring for credits. Further, keeping a constant check on one’s credit score is essential to maintain the credit score and, ultimately, to be aware of one’s creditworthiness.

Ways by which we can fix our Credit Score

A credit score depicts the creditworthiness of an individual through a numerical figure. It represents one financial stability to take a loan and to repay it. A credit score is thus an essential point of consideration for lenders to lend credit to any person. It is ranked on a score of 300-850, and any score above 700 is considered a good score. Thus, credit score becomes an important thing to keep in check, for anybody to maintain his financial credibility to borrow funds. While a high credit score depicts a lower risk on the borrower, a low score could put lenders in doubt.

The following ways can thus maintain a credit score:

By repaying Debts: It’s better to pay off balance transfers on time, instead of shifting it from one card to another. Also, one needs to be aware of all the funds one owes and then pay the immediate funds accordingly.

By keeping a check on the credit payments: Keeping a check on the credit payments means being aware of all payments history. Missing out on any single amount could also affect one’s credit score. Thus, it is better to set up an automatic payment system to pay all credit bills.

By ensuring repayment capability: It is better to opt only for that amount of debt that can be repaid easily. If one opts for a credit extension, without managing the expense, then financial stability could be affected.

By responsibly handling multiple cards: It’sIt’s better to maintain cards responsibly, instead of whipping off multiple cards at once. Closing cards suddenly could affect your credit score.

A credit score is an essential factor in maintaining one’s financial reputation. Good credit can thus be maintained by the above mentioned and can create a win-win situation for anybody.

Fix for having a Perfect Credit Report

A credit report is an essential document required to maintain one’s reputation in the credit market. Further, it represents a person’s financial credibility in terms of their credit history. This makes it essential for an individual to keep a check on one’s credit score and keep it error-free. A credit report could be made error-free by the following ways:

By cross-checking information: It is essential to fill in the details correctly To keep a report error-free. Therefore before finalizing important information like personal details, loan details, and bank and payment information accurately.

Ensure Verification: A credit report can even be applied for through online portals. These portals ensure the facts before concluding results by visiting the required banks. Therefore that proper verification with the bank takes place.

Keep patient: In case there is any dispute with the credit report, it is resolved within 30 days by filling dispute forms. Also, the credit bureau takes no charge of correcting credit reports. Once the disputes are solved, the credit report is updated accordingly.

Therefore, credit decisions could be wiser by solving disputes if any, and by keeping the credit report updated. An individual should check the credit report from time to time.

Why everyone has a different Credit score ?

A Credit score is an essential parameter that a lender looks at before allowing the borrower to borrow credit. It imparts the credit history of the borrower by providing an insight into the late and timely payments, and the loan is taken and repaid. Many credit agencies give a credit report based on the credit details. At times, credit reports vary from agency to agency because of the different mechanisms followed. Various credit score models include FICO credit scores, Equifax, Experian, and TransUnion. Therfore, we also must make a note a regular credit score check is essential.

However, one should remember that the blueprint for credit score calculation is more or less the same for agencies. The difference in the score, however, appears due to various reasons like time taken into consideration, and the accuracy of the information.

Thus, the credit score might vary across credit agencies. However, a decent score is ensured by timely payments. If an individual sticks to deadlines for payments, his credit score will maintain its authenticity irrespective of the credit agency.

Difference between Cibil Score and Cibil Report

CIBIL report and CIBIL score often confuse people in the financial market.

A CIBIL report is a report by the Credit Information Bureau (India) Limited. It shows details of a credit borrower in terms of financial history collected from Banks or NBFCs. This report brings into consideration all private information of the borrower, such as contact information, credit card bills, income and salary, expenses, loans taken, loans paid, and late and timely payments. Thus, it provides a detailed credit history.

A Cibil Score, on the other hand, is a three-digit number that reflects financial stability. It is measured on a scale of 300 to 900. A high score indicates higher monetary stability, and a lower score suggests otherwise. Therefore, a closer score to 900 is considered a good score. A CIBIL report indicates all credit actions of the past 36 months, while CIBIL score is based on the previous 24 months.

Thus, CIBIL score and CIBIL report are two different things; indeed, a CIBIL score is calculated based on a CIBIL report. However, both these terms are equally essential in accessing financial credibility.
Continue Reading : Difference Between CIBIL Score and Report

Some dosage related to Credit Score

Cibil Score is a critical factor in all aspects of your credit. It plays a crucial role in deciding your eligibility for loan and credit card along with determining the maximum loan amount or credit limit as well. A credit score is expressed in the form of a three-digit number ranging between 300-900.

Apart from its high importance in the credit segment, there are some facts about the credit score that you might not have heard before:

Too much of unsecured loans bring your credit score down. It is mainly because of the very nature of unsecured loans that there is no backup security against them.
To many credit inquiries in a short period also take a toll on your credit score. This is because each credit inquiry leads to a hard pull of credit report by the lender, which costs certain points to your credit score
Opting for settlement after you have missed multiple payments, also tanks your credit score. Writing off the outstanding balance by paying 40-60% of its amount seems attractive from the outside, but it affects your negative score negatively for the longest period of time. Continue Reading :

Continue Reading: Strange but True facts related to Cibil Score