Today's article is all about what is a credit score and how to check your credit score? Often you might have applied for a Credit card or a personal loan in the bank, but it gets rejected due to a poor Credit Score. In simple words, a credit score is simply an indicator of a person's creditworthiness or their ability to repay debt.
what is a credit score and how to check your credit score?
As I said above Credit Score is simply an indicator of a person's creditworthiness or their ability to repay debt. It is usually expressed as a number based on the person's repayment history and credit files across different loan types and credit institutions. A credit score is also known as a credit rating.
The Credit Score is a three-digit number which ranges from 300 to 900, with 900
being the best score and 300 is the lowest score.
If you have a good Credit score then you can easily get approval for your loans and credit card applications.
How It Works
Whenever you apply for a credit card or a personal loan, the first thing they check is your credit score. so now we will know how they calculate your Credit Score.
Your credit score is calculated by an algorithm that takes into account several factors. Each factor gets a different weightage in the calculation.
Your repayment history across debt categories such as loans and credit cards is your total credit balance.
The balance between secured and unsecured loans, the number of loans and credit cards you have, and credit utilization.
How to check your Credit Score
In India, there are four credit bureaus. The first one is Credit Information Bureau India Limited, the second one is Experian, the third one is Equifax and Highmark.
If you want to check your Credit Score you can visit their website and simply register yourself and then submit your details.
After submitting your details you will receive a report of your Credit Score in your E-mail.