A credit score is a three-digit numerical value that reveals the creditworthiness of an individual. Typically, it is the credit behavior of a person. The credit bureaus calculate it in India – Experian, Equifax, TransUnion CIBIL, and CRIF High Mark, by taking a typical analysis of your credit files, including payment history, amount of mortgage one has, and length of your credit history. The higher score relates to the responsible credit behavior history of an individual. Eventually, it helps you while requesting a loan from potential lenders and creditors. Credit score ranges from 300 to 850.
- 720 or higher – excellent
- 690 – 719 – good
- 630 – 689 – fair
- 629 or below – poor
Best site to check your credit score in Buddy Score. A Higher credit score benefits you to get a higher loan amount with low interest and your choice of tenure. Moreover, it helps you increase your credit card’s credit limit. Therefore, it’s essential to pay your EMIs and monthly dues on time. Any missed payment will eventually lead to a low credit score. Practicing a healthy habit of repaying loans on time improves your credibility.
What Does A Credit Report Monitor?
Your credit score monitors a detailed history of your entire financial life, including your account and how much you have paid on time. It also tracks if you have any bankruptcy reports and any write offs or inquiries. The final report you are provided with mentions your credit history and its dedicated dates. This report is beneficial to find if any further discrepancies are present in your report.
Credit reports enable your lenders to ensure that you are worthy of repaying the loan in time. Therefore, knowing your credit score is very significant to have proper knowledge about your financial health. But an essential thing to note is that checking your credit score isn’t the same as checking your credit report. So, what are the significant differences in monitoring your credit score report?
Tips for maintaining a good credit score
- You should never miss your payments.
- Always try to keep your credit card utilization ratio below 30%. Only if it is essential or in situations where you can’t pay through cash, then only use a credit card.
- Opt for secured and unsecured loans to get a healthy mixture of credit.
- Avoid applying multiple loan options in a short period. After comparing available credit card and loan options, choose the optimal choice.
- Always stay credit active with regular borrowings. Fetch credit reports periodically. It helps to find out if any fraudulent activities are happening in your history.
- Focus on closing old credit cards which are duly paid and not needed. Don’t pile up many cards.
- To avoid interest from piling up, pay in full or more than the minimum due.
- Use score builder loans, which are exclusive loans designed for new credit users who have no credit history.
Checking credit score and credit reports helps you look over your financial actions and find out how it is evolving, positively or not. Thus, you will be able to avoid any missing payments which affect your credit score and get better offers for new loans. You can avail of personal loans through Buddy Loan.
Ultimately, a good credit score provides a high credit limit with various offers, and it helps you qualify for a mortgage loan when it is essential. Although high credit limits can lead to spending a lot, you can be precautious, allowing you to avoid excessive unwanted dues. It is suggested that you must keep checking your score to know where you are lacking to maintain it and how you can improve your score. The best way to check a hassle free credit score is to do it on Buddy Score. They can give you financial insights within a sec.