A borrower’s credit score is a numeric expression of the lender’s perceive risk associated with providing credit to that person. The amount of debt owed, the regularity with which payments are made, and the timeliness with which they are made all factor into a credit score.
Lenders will be more likely to extend credit to those with higher credit scores. This is due to the fact that borrowers with higher credit scores are more likely to make good on their financial obligations.
The credit agencies in your country compile your credit report and score based on a wide variety of information. Including the duration of your credit history, your repayment history, and the number of credit queries that have been made in your name.
A higher credit score can open up more options for you when applying for a credit card or a loan from a bank or NBFC. Including a larger loan amount, a lower interest rate, and the ability to select a repayment term that works best for you.
Why is important to know your Credit Score ?
It’s important to know your credit score rating for a variety of reasons. For credit score check, if you suspect that your credit score is lower than you’d like, you can take action to raise it. Checking the company’s records for inaccuracies and seeing what kind of information they have on your account is also a good idea.
You can verify your credit score rating by contacting any of the financial institutions. With whom you have accounts or loans, or you can do so yourself over the internet. You’ll be able to get a copy of your credit report from them, which contains details on your payment history and standing with various institutions.
The Bajaj Finserv website provides access to check credit score free. Just stick to these simple instructions:
- Simply type in your initials and full name.
- Include your email address and mobile phone number.
- Your mobile phone will receive a one-time password (OTP) to confirm your identity.
- Age verification is the next logical step.
- The screen will next show you your credit report and score.
CIBIL Score Range
The information that is contain in the Credit Report under titles such as “Enquiries” and “Accounts” is condensed into a three-digit CIBIL score. On the CIBIL scale, a score might fall anywhere between 300 and 900. Your chances of being approve for a loan or credit card increase when you have a higher CIBIL score.
A worse CIBIL score is the result of late payments, multiple inquiries, and multiple inquiries into the same account. If your credit score is 750 or better, you will have an easier time getting approve for a wide variety of credit cards and loans. If you have a credit score that is lower than 750. It will be challenging for you to receive a loan from a conventional financial institution or from a NBFC.
If the CIBIL score is very close to 750, it is possible that the application for the loan will be accept. Nevertheless, the interest rates will be quite high. In the event that the credit score is poor, applications submit to financial institutions such as banks will be rejected. Credit Enquiries, Public Records, Account History, and Credit Summary are the Four Most Important Components. Credit Report Credit Enquiries are the most recent information that has been request on a credit account.
When determining your credit score, CIBIL takes into consideration a number of different aspects. The type of credit you have, how often you use credit, how much credit you have. How often you borrow money, and how well you pay back loans. Other factors that are takes into consideration include how well you pay back loans and how often you borrow money.
The credit score rating of a borrower is indicative of the level of risk the lender is willing to take by extending credit to that person. Those with stronger credit scores will have an easier time getting loans approve. If you want more credit card and loan possibilities, a higher credit score can help. It’s possible for a CIBIL score to range from 300 to 900. Having a higher CIBIL score improves your eligibility for credit and loans. You will have an easier time getting credit cards and loans accepted if your credit score is 750 or higher.