What is a Credit Score?
Credit score plays an important role in our financial life. Financial institute increasingly rely on credit score to provide loan. A bad credit score can increase your borrowing cost, or you may end up not getting finance. Some high-profile job can slip from your hand just because you do not have credit score up to mark.
It is a 3-digit number that represent credit risk, or likelihood that you will repay loans. Your credit score is used at various institutes before making decision like lending a loan to you, issuing credit card and many other.
Now probably you must be thinking about what is a good credit score or what is a bad credit score?
A credit score ranges between 300 and 900. Below are the different credit score range:-
| NA/NH – | You have no credit history |
|---|---|
| 300 to 549 : | Bad credit score |
| 550 to 649 : | Average credit score |
| 650 to 749 : | Good credit score |
| 750 to 900 : | Excellent credit score |
Factors that can impact your credit score: –
A high credit score indicates low risk and a lower credit score indicates higher risk. Let’s take a look at some of the major factors that can affect your credit score:
How to check your credit score?
In 2016, RBI through a notification had asked the credit bureaus to issue one credit score and report to every user on request. This one credit report can be accessed once a calendar year and comes without any cost, that is, FREE.
There are 4 credit bureaus operating in India – TransUnion CIBIL, Experian, Equifax and CRIF High Mark and each of them must provide one free report each year.
Here’s a step-by-step on how to access your Free Credit Score from Experian.
- Go to https://www.experian.in/consumer-services/
- On that page click on Free Credit Report
- Enter your basic details Full Name, Email address and Mobile number.
- Enter OTP received on your mobile number
- After that enter more details like Date of Birth, Gender, PAN No., Address and Pin Code.
- Click on Get report
- On this you need to verify details.
- After successful verification you will be taken to a page which shows you FREE report
What does free report contain?
- Dashboard: It will show details like Credit Score, Total Credit Account, outstanding amount and Product purchased.
- Profile: It will show basic details filled while creating profile
- Report: Report session will contain:
- Experian Credit Score
- Report Summary
- Summary: Detailed Information of each Credit Account
- Information on credit and non-credit enquiries created.
- Dispute: Raise and track dispute
