With the growing usage of credit sources a good credit score can make a lot of difference to your finances. It will help you fetch high loan amount, better interest rates, and assist you make use of services and goods that demand no deposit. Credit score is an important element and is considered very cautiously by banks and other financial institutions.
What is a credit score?
It is a three digit number that varies within the range of 300–900 and that defines your financial health. The score is derived from the integrated credit report existing with the institutions. A credit score will determine whether you are eligible for a loan and it also helps in deciding your interest rates for repayments. It also gives you more space to negotiate for loans and other credits.
Who can get it?
Any person who own a credit source can apply for it from Credit Information Bureau (India) Limited popularly known as CIBIL. The organisation can provide credit scores of individuals as well as other companies.
Can I find the credit score online?
You can request for the information from CIBIL by applying for the same with an application form. With a basic fee you will have access to your credit score. You save your time and access the information without any hassles.
Though there are several factors affecting the credit score such as payment history, number of accounts, loans and credit cards, you can always improve it. This can be done with simple steps such as timely payments, tracking the credit utilization, getting a credit card only if there is a need and so on. Basically banks and financial institutions look for credibility by using the credit score. They want to ensure that the money they are lending will be recovered without any defaults.