A credit score ranging from 750 to 900 is considered to be a perfect credit score. The closer your credit score is to 900, higher the chances of getting a good deal on loans. With a score in this range, the borrower is less likely to default on a loan. A good credit score can be achieved by repaying debts on time and managing finances responsibly. A credit score in this range gives you the power to negotiate better deals in terms of interest rates on credit cards and loans.
The credit rating agencies in India are responsible for analyzing and calculating your credit score. A credit score is a numerical assessment of an individual’s capacity to manage debt. When a person make transactions like credit card repayment or payment of loan EMIs, the banks keep a track of them.
Then banks and other financial institutions submit repayment details to the credit bureaus on a monthly basis. The information submitted comprises of a list of all payments, details of approved/rejected applications for loans and credit cards, credit card limit and credit utilization ratio and the status of the credit accounts. The credit rating bureaus also collect additional data from other financial institutions on the financial habits of a person. The credit bureaus then process this information using complex algorithms and formulate the credit score.
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SEE ALSO: Credit Score Calculator
The credit score is calculated based on the ability to manage and repay debt. A high credit score can make financial life easy. There are several factors that you must consider to maintain a good credit score:
SEE ALSO: 10 Credit Score Myths
A good credit score can sort out financial life and helps get loans and credit cards sanctioned quickly:
Getting an excellent credit score is not impossible. A perfect credit score is anything that is above 750 points. Listed below are few steps that will help increase credit score from good to excellent:
IndianMoney realizes how important it is to have a good credit score to pursue financial goals. To help people check their credit score online and avoid hard enquiries, IndianMoney has tied up with Experian to check Credit Report and Credit Score for free. You can visit IndianMoney and follow the steps given below to check credit score for free.
An individual is offered loans based on credit worthiness. Make sure to maintain a good credit score to get loans sanctioned easily.
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