As we may have previously understood, a credit score is the measure of an individual’s ability to repay the loan. It precisely depicts creditworthiness of the individual. The credit score is a 3-digit numerical falling in the range of 300-900. A score of 900 is considered to be the highest.
Typically, credit scores are calculated by authentic credit bureaus in the country by considering different factors like the length of your credit history, past repayment, credit ( hard & soft) inquiries, many more.
A higher credit score will help you to get benefits (like higher loan amount, lower interest rate, flexible tenure for repayment) when you apply for a credit card or cash loan. Whether it’s from a bank or NBFC, a good credit score really helps.
A free credit score can be easily accessed on the website of leading credit report bureaus.
Steps To Get your Free Credit Score on Credit Bureau Websites:
- Go to the credit score window
- Insert inputs for your first and last name
- Provide your mobile number and e-mail address
- Check for an OTP sent to your registered mobile number
- After verification, also reconfirm your age & sex
- Now, get your credit score & report handy. Soon it will be displayed on the screen.
Credit report bureaus review and revaluate your score in frequent intervals. If you have a low credit score, start planning your money intelligently and pay your dues on time. This will encourage the agencies to reward and boost your score.
CIBIL Score Range
The CIBIL score actually provides a crux of your past credit history coming from different sources as ‘Enquiries’ and ‘Accounts’. Higher your credit score, better it is. You can easily get a loan with a higher credit score. Every late payment will negatively affect your CIBIL score, so avoid. A score of 650-750 is extremely favorable and gets you cards and loans at ease.
Even if you’re approved on a low credit score, the interest rates will be high. Infact, the banks and NBFCs may voluntarily approve or reject the application basis your credit score. Credit Enquiries, Public Records, Account History, and Credit Summary are the 4 most important sections of the credit report. The primary factors here are the credit mix, new credits, tenure, credit utilization, credit balance, and repayment history.
Experian Score Range
An Experian score shuffles between 300 and 850. Any credit score of 800 and above is considered desirable while anything below 700 is poor score. So higher the credit score, better it is for banks and NBFCs to receive surety for loan repayments. So, essentially, the credit score falls between 600-750. The credit score not only applies to a personal loan or credit card but also to a car loan. Higher the credit score, lower the down payment & interest rates.
Since, your credit score forms the base of your borrowings, pay all your bills on time and avoid making too many enquiries.
Your credit score is computed by the credit agencies based on the information supplied by the banks & NBFCs. Essentially, banks keep Credit Information Companies up-to-date about individuals monetary habits.