F.A.Q
Why does a credit score differ from bureaus to bureaus?
Every credit bureau uses a different mechanism to generate your credit score, therefore, a minor difference may occur. So, next time when you notice a difference in your credit score issued by the different bureaus, do not get confused.
What is a credit score?
Well, a credit score is not as complicated as you think. In simple words, a credit score is a three-digit number that can lie anywhere between 300 to 900. based on an individual's credit behaviour. A credit score represents the creditworthiness of the borrower.
Who issues the credit score?
The 4 primary credit bureaus of India, namely, CIBIL, Equifax, Experian and CRIF High Mark are exclusively held responsible for the issuing of the credit score, according to the creditworthiness of an individual. To check the creditworthiness of an individual, his or her credit report is evaluated by the bureaus.
How is a credit score calculated?
In order to calculate your credit score, the credit bureaus get the necessary information sourced from your credit report. Based on the sourced information, your creditworthiness is determined and you get assigned with a credit score.
Why is a credit score important?
Your credit score plays a huge role in your credit life. It is the very first thing that the lenders pay attention to when you apply for credit. Having a good credit score helps you in obtaining the desired credit at the favourable terms, i.e, a lower rate of interest and extended loan tenure.
What is the best credit score to have?
A credit score can range anywhere between 300 to 900, depending on the credit behaviour of the borrowers. In a normal scenario, a credit score of 750 or above is considered as the best credit score to have since it unlocks one's access to every kind of loan or credit card at the most attractive terms.
What is the lowest credit score to have?
A credit score of 300 is considered as the lowest credit score than one can have. It represents that the borrower has an extremely reckless behaviour towards credit.
How can credit score be checked for free?
Well, checking your credit score is not a hard nut to crack and it can be checked for free. By visiting the websites of the 4 main credit bureaus and other financial institutions, you can easily check your credit score for free, by entering the asked details.
Does checking your credit score hurt it?
Well, it is the biggest misconception that most of the borrowers have. Checking your credit score will not hurt or affect it, instead, it is a good practice to follow as it helps you in keeping a track on the progress or regress of your credit score.
How to keep your credit score healthy?
Keeping your credit score healthy costs nothing but it demands a responsible behaviour towards your credit. You must be very consistent and honest towards the repayment of your loan along with paying the credit card bill on time.
