Banks and other financial institutions submit relevant information to all four credit rating agencies. The information is then processed by complex mathematical formulas and the credit score is derived.
Your credit history is maintained in reports at different credit bureaus. All lenders don't always report information to each bureau or some of them may also consider payment of utility bills as an important parameter. So, there may be some minor discrepancy in credit score issued by credit information Companies. Banks give equal importance to credit scores issued by all credit information Companies.
Want to know more on Credit Score ? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.
A credit score is a three digit number assigned to an individual by the credit rating agencies after analyzing credit worthiness. The credit score is calculated based on the credit related activities and financial transactions. The banks and other financial institutions submit credit information to the credit bureaus each month.
The information submitted comprises of a list of all payments, details of approved/rejected applications for loans and credit cards, credit card limit, credit utilization ratio and the status of the credit accounts. Thereafter this data is analyzed through statistical techniques or algorithms and the credit score is calculated.
SEE ALSO: Credit Score Calculator
IndianMoney.com realizes the need to take command of personal finances. In order to help people, IndianMoney in association with Experian has made provisions to check Credit Report for free. You can visit IndianMoney.com and follow the steps given below to check credit score for free.
SEE ALSO: What Is A Perfect Credit Score?
A good credit score is beneficial in many ways. Outlined below are the advantages of having a good credit score:
Credit score is a summary of the loans and credit cards availed and repayment history. Having a good credit score is important to get loan applications sanctioned.
Seeking credit with a bad credit score further lowers credit score. A credit score in the range of 300 to 500 is considered poor. A lender generally does not sanction loans for borrowers with poor credit score or they are likely to charge high interest rates.
A credit score is build over time and is a summary of repayment history. There are no short cuts to instantly increase credit score. To increase your credit score within a short time, you can use Experian Boost that helps improve credit score by taking into consideration the credit on utility and mobile bills.
Experian boost helps reflect a positive credit score and the services are completely free of cost. This will help customers with poor credit scores boost them with positive payment history.
You May Also Watch:
Keep your Financial Cognizance up to date with IndianMoney App. Download NOW for simple tips & solutions for your financial wellbeing.
Have a complaint against any company? IndianMoney.com's complaint portal Iamcheated.com can help you resolve the issue. Just visit IamCheated.com and lodge your complaint. If you want to post a review on any company you can post it on Indianmoney.com review and complaint portal IamCheated.com.
Be Wise, Get Rich.
This is to inform that Suvision Holdings Pvt Ltd ("IndianMoney.com") do not charge any fees/security deposit/advances towards outsourcing any of its activities. All stake holders are cautioned against any such fraud.