If you are planning to take a loan, then it is very important to have a good credit score for this. The better your credit score, the easier you will get a loan. Know all the important things related to credit score.
In today’s time inflation has increased so much that your work cannot be done on the basis of savings alone. There are many occasions when people need to take a loan from a bank or any other place, while buying or building a house, while buying a car, for education, in case of medical emergency etc. If you are also planning to take a loan, then it is very important for you to have a good credit score. Economic affairs expert Shikha Chaturvedi tells that your credit score decides whether you should be given a loan or not, or how much loan should be given. In simple words, you can understand that your credit score plays a big role in deciding your eligibility for taking a loan. If you are also preparing to take a loan, then you must know about these things related to credit score.
How is your credit score determined?
Credit score is also called CIBIL score. It is prepared on the basis of the report of the credit record of the individual. While deciding the credit score, it is seen that how much loan you have taken so far, whether it has been repaid on time or not, which bank or other lending companies have taken loan or credit card etc. Loan related to credit All things are accounted for. The higher your credit score, the easier the loan is likely to be.
Who decides this score
All credit bureaus issue your credit score. These include credit information companies like TransUnion CIBIL, Equifax, Experian and CRIF Highmark, which are licensed to collect, maintain, and generate credit reports/credit scores based on this data. . The credit score is fixed between 300 to 900. Generally a score above 750 is considered a good score.
Not having a credit score is also not good
There are many people who have never taken a loan nor do they use a credit card. In such a situation, they think that they will get the loan easily because they do not have any history related to the loan. But your assumption is wrong. If you have not taken any loan and do not have a credit card, then the credit information companies are not able to know whether to put you in the risk category in terms of loan. In this case you do not have any credit score. Many financial institutions are hesitant to give you a loan if you do not have a credit score.
How to improve credit score
Take only as much loan, whose installment you can pay on time. Pay EMI on time.
Avoid excessive use of credit cards and do not take too much personal loan. Take loan only when needed.
Keep an eye on the person guarantoring your loan as wrong transactions also affect your score.
