working as an approved credit rating agency since 2010, equifax provides different reports like portfolio management, industry diagnosis, credit fraud, or risk management report in the case of companies.Įstablished in the year 2010, experian conducts an analysis of companies and individuals for their credit reports. transunion cibil members include all the major financial institutes, lenders, nbfcs, and banks, etc.Įquifax gives portfolio scores and risk scores along with credit scores that usually range from 1 to 999 for individuals. in the case of any entity or company, the credit score is known as a performance score. the credit score ranges from 300 to 850 720 or above is an excellent score. It is a complete credit bureau that reports the analysis for organisations as well as individuals. credit activity includes all the information regarding opening or applying for various accounts, repayment history, types of loans you have applied for and credit limit usage.ĭifferent credit bureaus available in IndiaĪ credit bureau is a credit agency that collates your information and shares it with lenders and creditors in the form of a CIBIL score that is helpful in checking your creditworthiness.īelow are some leading credit bureaus of the country. having a mix of various products like installment loans, home loans, and credit cards help in increasing your credit score.Ĭredit activity - remaining 10% depends on your recent credit activities. How many products you have - the products (types of loans) that you have is responsible for the 10% of your credit score. having said that, at some point, you must apply for a credit card or loan rather than avoiding it so that you also have a credit history for banks’ review. if your history of on-time payments is long then definitely you would have a higher credit score. while small balances and timely payments would help in increasing the score.Ĭredit history length - the length of your credit history is accountable for 15% of your credit score. if you have a high balance and have reached the limit of your credit card then this would lead to a drop in your credit score. How much you owe - about 30% of your credit score depends upon how much you owe on loans and credit cards. make sure you never miss out on payments as this would leave a negative impact on your score. so you can score high if you have a higher proportion of on-time payments. your payment history shows how timely you’ve made the payments, how many times you've missed on the payments or how many days past the due date you’ve paid your bills. Payment history - 35% of your credit score is calculated on the basis of your payment history. general factors on the basis of which your credit score is calculated are mentioned below: a good credit score means that you are capable of handling the credit in the best possible manner, therefore, banks or financial institutions will consider offering you a credit card with a higher limit.Ī credit score is calculated differently by the various credit information bureaus. Higher credit card limits: a good credit score not only gets you the best of credit cards with attractive benefits or lower rate of interest on the loan you have applied for but also you are eligible for getting a higher loan amount. Lower interest rate: with a good credit score, you can enjoy the benefit of a lower rate of interest on the loan amount that you have applied for.Ĭredit cards with attractive benefits- you are offered credit cards with attractive benefits and rewards if you have a healthy credit score. moreover, the loan that you have applied for gets approved quickly and processing time is zero. Quicker loan approvals: applicants with a good credit score and long credit history are offered pre-approved loans. a good credit score means that you pay the bills or outstanding amount timely that leaves a good impression of yours on the banks or other financial institutions where you have applied for a loan. Improves your eligibility for loans: a good credit score improves your eligibility to get a loan faster. Listed down some of the important reasons due to which you must maintain a good credit score: Why is it important to maintain a good credit score?
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