Your credit score will decide your loan interest rates, and when you have a poor score the one thing which you should do first is to check your credit report. What is a credit report? If you are new to this and don’t know much about the credit score and credit report, it is the borrower credit profile which encompasses your loan and credit card details. Your credit score will start building when you buy a credit card or borrow a loan. Read this article here and find out how to improve the credit score with your credit report.
Range of Credit Score
A credit score ranges from 300 to 900 which will depend on the borrower credit card and EMI payments. 300 is a poor credit score whereas 900 is the highest score. To borrow a loan or credit card the ideal score, you need is 750 or above. A credit score shows the borrower creditworthiness to the lender.
Due & Nonpayment
If there is any due or nonpayment on the borrower’s credit report, the credit score will decline rapidly. To make it correct, you can visit the bank or NBFC branch to settle the due amount. When you do the due payment of your credit card or loan, the credit score gradually improves.
Error in Credit Report
If you find an error in the credit report, contact your credit bureau about the report and request for a correction. There are several online credit bureaus in India, and some of them are Transunion, Equifax and Experian. Visit the official website of the credit bureau to get specific directions and details to file disputes online.
Credit Utilization Ratio
Your credit score can also get affected if you use your credit card more frequently. Why? Because it makes your profile credit hungry and impacts your credit report negatively. To improve this, you can reduce your spending and use the card whenever it is necessary.
How to Check a Credit Score for Free?
You can visit the online credit bureau for instance, Transunion CIBIL and follow the steps below to check the credit score for free.
- Visit the CIBIL official website
- Create a CIBIL account
- Enter your name, email address, phone number and PAN details in the form
- Submit the form and verify the details by entering the OTP
When your account is created, choose a username and create a password. Login to your CIBIL account and check your credit score.
Benefits of a Healthy Credit Report and Good Credit Score!
- Get loan approval quickly: You can get approval of a loan either from a bank or NBFC without any hassle.
- Negotiate for the interest rate: If you are not satisfied with the interest rate, you can negotiate it with the lender. In terms of your good credit history, you can reduce the interest rate.
- Affordable EMI: Compared to the other borrowers with poor credit score you can get a more affordable EMI amount.
- Suitable loan offers: When you have a good credit score, sometimes credit bureau such as CIBIL offers the customer a loan as per his/her credit score.
- Reduced risk: There is no risk on the borrowers credit report which makes him eligible for loan approval.