You should know your credit score before applying for a loan. A better credit score will decide whether a loan will be obtained from a bank or a non-banking financial company and if the loan is available, what will be its amount.
New Delhi. Due to the corona virus epidemic, there has been a big hit from income to business. But now, with the risk of infection decreasing, the economy is coming back on track. To overcome this crisis, most people need some capital so that they can rebuild their business. Apart from this, a loan is required to meet many types of expenses at the individual level. Credit score is very important for taking a loan from any bank or non-banking finance company. Improved credit score not only increases the chances of taking a loan, but the loan amount is also expected to increase. Actually, it is ascertained from the credit score whether the person who has applied for the loan can be given that loan. There is no risk in giving loan and if loan can be given then what will be its amount.
With the help of credit score, the bank or non-banking finance company (NBFC) find out whether the person who has applied for the loan, has a correct repayment history. Before that the person has not made any default in the payment of the loan. All these things are decided with the help of credit score. In such a situation, today we are going to tell you some important things related to credit score so that you do not have any problem in applying for a loan. Also, the next time you apply for a loan, you should know all the things related to your credit score.
How much should the credit score be?
With the help of credit score, you get information about your past debts. The loan is available only if the credit score is good. If you pay the EMI on time, then it has a good credit score. The credit score ranges between 300 and 900 points. If a person has a credit score of 750 or more, then it becomes easy to get a loan. The credit score includes the credit history of the last 24 months.
Specifics of loan and credit card
In such a situation, it is important for any person to have a good credit score. Do not work too hard for this. But some things have to be kept in mind. Pay the bill on time for a good credit score. Periodically review your credit score. Take the co-branded card as per the requirement. Pay from electricity bill to insurance on time. Also, monitor the loan account of the creditor giving the guarantee.
How the credit score is determined?
It is also important for you to know on what basis the credit score is determined. Some important things have to be given special attention in preparing credit score. To repay the loan on time, there is a 30 per cent share in the credit score. Secured or unsecured loans have a 25 per cent stake. Secured loans like car loans or home loans are included. At the same time, unsecured loans include personal loans etc. Credit exposure is 25 percent of the credit score. Whereas, there is a 20 per cent share in the credit score for the use of debt.
How to view CIBIL report
Now the question comes how do you check your credit score. To know your credit score, go online by going to www.cibil.com. For this, you will have to pay 550 rupees. For this, there is a process of authentication. A CIBIL score will be obtained after this authentication. This score will be sent to you via email.
How to improve the reason behind it CIBIL score For
good credit score, you must keep some things in mind. Like, do not use the full limit of your credit card. Do not take more loan than credit card. Do not apply for many loans. Give importance to home loan and auto loan. Avoid taking a personal loan. Avoid closing credit cards. Review joint account accounts. Keep reviewing the CIBIL score.
