When to check your credit report and improve your credit score?

Whether you are planning to buy a home, a car or even a new credit card, your credit score has immense affect on your loan processing. A credit score is a 3 digit number that shows numeric summary of your credit health. Such score is derived by credit bureaus by analyzing your credit history. The score usually ranges from 300 to 900 points and the higher score suggests more chance of getting approval of your loans. If you are in dilemma to find how to improve credit score, following tips may help you:

ñ      The first and foremost easy action to improve your credit score is to pay off all your bills on time and pay regular installments on your loan default. Even, if your credit score is trembling, you just follow the technique of paying all the bills on time. You need to maintain no late payment status for at-least seven years.

ñ      It is important to put a limit on your credit card use and utilize it only for certain ways. Your credit score would be on the higher side if you will make less use of credit cards as well as will avoid using too many credit cards. The ideal would to be use between 10% and 20% or less of the total credit available.

If you don’t have any idea how to get credit report and improve your credit score, it is better to take help of professional credit agencies. These agencies become your friend and guide in showing you the right way to improve your credit score.
Visit www.cibilconsultants.com and book an appointment now !

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Significance of good credit score !

Now that we have talked enough about what is a credit score, why credit score is important and how credit score can help us. Now the main question is what should be a good credit score?

Starting from the beginning, a credit score is a three digit numerical figure which is derived from your data-rick credit report. It is a critical factor for lenders to determine your creditworthiness for a loan, credit card or any other credit.

Credit score ranges from 0 to 999 for all the bureaus. The major three credit bureaus in India are CIBIL, Equifax and Experian. The banks and financial provide the information to these bureaus and these bureaus based on the data provided by the banks and financial institutions provide the credit report to them. Basically credit score is a snapshot of the credit report of that individual.

Talking about a good credit score, a score more than 750 is considered to be a good credit score. Individual having a good credit score find it really easy to get approval for loans and credit card. While people with credit score less than 750 struggle to get approval for loans and credit cards instantly.

Below are some questions that are important to know about credit score:

How is credit scores generated?

Credit score are generated based on the factors such as payments histories, debt level, types of credit and length of credit accounts which are pulled out for their credit report. These factors will determine if the consumers will pay their dues on time or not. So, a credit score summarizes the information in your credit report, which makes it easier and faster for a lender to process a loan application and make a determination.

Benefits of good credit score? 

A good credit score will help you to take credit for a car or a home or get a credit card at a comparatively lower rate of interest. This means that you will have to pay less money towards interest.

Ultimately having a good credit score will only benefit you and having a poor credit score will only damage your credit profile.

Improve your credit profile by improving your credit score. Opt for service packages available at www.cibilconsultants.com

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It's important to protect you credit score.

As we all know that credit score plays a very important role in availing credit line for any individual. Apart from individual, banks and financial institutions also provide credit to companies based on their credit score. 

Firstly let us understand what a credit score is and how it is derived. 

Credit Score is a three digit numerical figure which describes the creditworthiness of the individual and also for any company. Credit score ranges from 0 to 900 for all the bureaus. Credit score is calculated from the credit report provided by the credit bureaus of the country. 

In India, the major credit bureau is CIBIL. This bureau provide credit report based on the information provided by the member banks and financial institutions. It collate all the data received from the banks and financial institutions and provide credit report to individuals as well as to the companies. 

Credit Score plays an important role in the financial planning. Being an important aspect of the ones financial planning, many individuals do not take credit score very seriously. 

A recent survey reveals that 1 of 4 individuals have the awareness about the bureau. Also as per the survey, 92% are unaware of credit score. Not only that, it was also unbelievable that 98% of the individuals were unable to understand the credit report provided by the credit bureaus. 

It is really important for individuals to be aware about the credit bureau and credit score. For individuals who are aware about credit score and credit bureau, they are not aware about the parameters that are important for improving their credit health. 

For improving ones credit score, they need to work on the below important parameters: 

•    Length of Credit History

•    New Credit 

•    Types of Credit 

•    Income Expense Ratio

•    Debt Income Ratio, etc

Having proper knowledge on the above parameters and working properly on the same will help individuals and companies to improve their credit score. 

Many individual think that making payments on time for their debts will help to improve their credit score, but this is not the case. There are other various parameters which are crucial for improving their credit score and credit health. 

Also checking your credit report from time to time will help to keep a track on the lines of credit that you have taken. It also helps you to trace out those accounts which are not applied by you. Checking your credit report frequently will help you to protect yourself from Identity theft.
Check your credit score and derive credit report at www.cibilconsultants.com

Source: Secondary

Learn how interest rate is affected due to credit score !

Repayment of a loan has two parts- the principle and the interest on the borrowed amount. And thus every person who is applying for a loan tries to find the lowest interest rates possible. A low interest rate makes it easier for the borrower to repay it back as there is less interest added to your monthly payment.

Bank interest rates are not set generally but they are set up on the basis of your credit score. Banks check your CIBIL score to measure your credit worthiness i.e. the ability to repay back the loan which is one of the main factors in deciding  interest rates.

The major credit bureau- CIBIL, collect data from lenders and banks about your credit history and payments and compile this data into your credit report. Banks use these reports to determine your credit worth. The better your credit score, the better interest rates you get and the lower your credit score, the higher will be your interest rate. Higher credit scores show the lender that you've handled credits well in the past and pay your dues on time and thus lower interest rates while in lower credit score, the banks see you as a high risk customer and are disbelieving about you paying off your dues.

The higher risk you pose as a borrower, the higher interest rates the banks set up for you and vice versa. The range of a credit score generally is 300 to 900. A credit score higher than 750 is most likely to get lower interest rates and anything below 600 gets you higher interest rates.

Want to learn how to step forward carefully,so that it doesn't affect your credit score and thereby your lower interest rate? visit us @ www.cibilconsultants.com

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What Your Credit Score Range Means?

Credit score ranges can sometimes be confusing. The best way to determine if you have a good credit score is to use the credit score ranges above as a guide. This is similar to how lenders and credit card companies will look at your credit score to decide whether to give you a loan or not.

Credit Score Ranges

• Excellent 780+ – With an excellent score of 780 or higher you will get the best rates available.
• Very Good 720 – 779 – This is a very strong score and you shouldn’t have any problems getting good rates.
• Good 680 – 719 – This is a good credit range to be at, but you won’t get the very best rates.
• Average 620 – 679 – Your score could use some improvements but you should still be able to get decent rates.
• Poor 580 – 629 – A credit score in this range indicates that you’re higher risk and might have trouble finding decent rates.
• Very Poor 579 or less – Anything less than 580 means that you’re very high risk. Don’t worry though, this can be fixed.

When your credit score is under 750, you probably have a negative entry like a late payment. The easiest way to quickly improve your credit score is to get that negative entry removed. If you’re the type of person who would rather have a professional handle it and just be done with the whole thing,visit www.cibilconsultants.com. They’ll take care of you. 

Moving Up The Credit Score Ranges

Like I said, don’t worry if your credit score is sitting at the lower end of the credit score ranges. You can improve your credit score in no time if you dedicate some time to learning about how credit repair works. Take experts advise @ www.cibilconsultants.com
Hurry ! Book an appointment now !