Find out the ways on how you can know your credit score free India, for you to be able to know the credit standing that you have when it comes to asking for a loan or applying for a credit card.
Do you want to know your credit score free India? Find out how you can check your credit score for free by reading the information below.
People who are on a tight budget are looking for different ways on how they can check their credit score for free. Fortunately, there are now a few ways on how you can quickly check your credit score without spending a single cents. Find out where you can easily check your scores free of charge.
CreditSmart will let you check your CIBIL score for free. All you have to do is to answer a few questions and at the end of it, you need to register your email. The questions will usually be about your credit health and credit history. After answering everything, you will then get the score that you need instantly.
Freescoreindia decided to provide a free credit score service because they want to bridge the availability of credit score and to help people to get educated when it comes to the importance of financial life and its aspects.
What is a credit score in India
Familiarize yourself with a credit scores in India by reading the information below.
CIBIL is India's credit information company, which collects and maintain all the information on an individual's credit card and loan. Find out more about credit score in India below.
Credit Score Range
The credit score ranges from 300 to 900, wherein the closer your score is to 900, the more confident the lending company is with you when it comes to granting you your loans. If your score is less than 750, most lending companies will see you as high risk, which can lessen your chances of getting approved.
Benefits of Having Good CIBIL
There are a lot of advantages of having good CIBIL, such as getting a higher amount of your loan, lower interest rate, and a fast approval of the loan. Some companies will also give you a longer repayment period, which means lower monthly dues for you.
How are credit scores calculated in India
In India, credit score is calculated by Credit Information Bureau of India Limited (CIBIL) which first started collecting borrower's information. It is also known as the CIBIL TransUnion score which is measured in a range of 300 to 900. Closest to 900 shows better creditworthiness and little probability of the creditor defaulting on his or her payments.
The CIBIL TransUnion score is based on five factors. First, is the applicant's repayment history which accounts for 35 % of the total score. Second is the credit balance which accounts for 30 % of the credit score in India. Followed by the amount of time for credit use which is responsible for 15 % of the rating on your CIBIL score. Final 10 % is for your overall credit mix.
The CIBIL score that is calculated using the weights mentioned above is responsible for approval, disapproval or the type of credit when you apply for loans in India.
Explanation of credit score ranges in India
A lot of people are wondering about the explanation of credit score ranges in India. Let's find out by reading the information below.
The credit score in India ranges from 300 to 900. The higher your score, the easier it is for credit companies to trust you. You can easily get a loan or a credit card without providing too many requirements.
A Good credit score
A good credit score ranges from 750 to 900 and most banks and financial institutions see people who have this score as low risk. This means that they are comfortable in approving credit card or loan applications to these people.
A Bad credit score
A bad credit score ranges from 300 to 749 and banks and financial institutions see people who have this score as high risk. They usually require more requirements before granting them their applications.
Explanation of credit score ranges
It is important to know the category that you fall into when it comes to credit score for you to be aware. The range of a credit score can go from 300 to 850. Always remember that the higher your score, the higher the chances of you to qualify for a loan. There will also be instances where a financing company is okay with 650 scores, while the other is fine with a 750 score. It will all depend on the lender itself.
A lender or a bank will check your credit score if you qualify for the application that you are requesting. Here are some of the credit score ranges that you should know.
Bad credit score
People with a credit score below 579 is known as high risks. Foreclosures, poor payment history, and bankruptcies are the reasons why people fall into this category.
Good credit score
A good credit score ranges from 680 to 719. People with this credit score can expect approvals and interest rates that are better.
A very good credit score ranges from 720 to 799. People with this credit score is known to be small risks, and they often get loan amounts that are higher than usual.
An excellent score ranges from 800 and above. Financial freedom is expected to people with this score.
Things you can do to improve your credit score
Having a bad credit score is similar to having poor health. Therefore, you need to take measures that ensure you are continually improving on it. The most efficient way of repairing bad credit is good management over time. Improving your credit score is necessary for you to be eligible for better terms and rates for loans in the future.
Regular credit report checks
You are advised to monitor your credit report regularly to see if it has any errors. A credit report brings you up to speed on your status as a debtor. Ensure that the payments are reported correctly and the amount owed to each creditor is correct. Errors must be disputed to your credit bureau promptly.
Reduce your debt
Most people usually take loans just because they are eligible for them without considering the potential damage to their credit score. For a start, you can reduce your reliance on credit cards. Design a plan that ensures you give priority to your debts that have the highest interest rates.
If your monthly premium is not automatically debited from your account, you need to set up a payment reminder. Timely credit repayment improves your credit score over time. Some financiers usually send emails or texts to their clients to make payments.