Almost everyone who holds a credit card and has applied for any kind of loan in the past is familiar with the term “credit score .” However, very few people realize the significance of adequately managing their credit score and keeping track of it. You must know that maintaining your credit score is as important as obtaining one.
To make you understand better, we have curated an article that will let you know what a credit score is and how you can keep a regular check on it.
What is a Credit Score?
A credit score is a three-digit numeric figure nominally lies from 300 to 900, which best describes an individual’s creditworthiness represented by the end report of their overall credit history and credit ratings.
How Can You Check Your Credit Score Online?
You can check your credit score online for free without paying a single penny.
Here are the steps that are involved in checking your credit score online:
- First, you need to download the application or visit the web page of that online platform you want to check your score.
- Log in or sign up by registering your mobile number and entering the generated OTP to proceed further.
- Go to the section that says “check your credit score”.
- Enter necessary information mentioned like your name, DOB, PAN no, and email ID.
After completing these steps and ticking in the declaration checkbox, you will be directed to the web page with your credit score displayed on your mobile screen.
Buddy Score is also a platform that allows you to check your credit score for free in just a few minutes by completing a similarly simple process.
Do you Know What Are The Pros of Having a Credit Score Are?
Having a credit score benefits an individual in many ways. Some of the prime advantages you get are mentioned below:
- Allows you to grow your credit and helps you when you invest in the expenses that need to be covered primarily.
- Allows you to get an immediate loan request approved at a comparatively lower interest rate whenever facing any financial shortcomings.
- Improves your spending habits by limiting your budget and only covering the required expenses. It makes you a consistent user so you handle your credit responsibly and sensibly when necessary.
What Affects The Credit Score?
A good credit score is critical to one’s financial health because it grants you access to various benefits and offers. It can be a hassle if you don’t have one. Hence, let’s take a look at some of the factors that contribute to your credit score deterioration.
- Utilization of credit lines: Credit unions typically attract us with various offers associated with their credit lines. Thus, we end up spending so much that we cannot meet our payments and miss some. Hence excessive spending and cutting the payment can directly degrade our credit value and might harm our credit score. Reduce your reliance on credit cards and other lines of credit to ensure a better experience.
- Too many debt inquiries: Taking out a loan when necessary is acceptable, but obtaining too many loans from different lenders will lower your credit score. Because lending institutions observe these inquiries and then decide whether to give you a loan or not, so avoid making too many loan inquiries in the future.
- Inability to repay loan money on time: Your credit score may also get affected when you take out a loan and fail to repay an agreed tenure. It might also happen when you take out a loan with a low income but cannot repay it on time. Due to this, lenders may become skeptical of you and refuse to lend to you in the future. Therefore, you should take out an affordable loan and one that you can repay.
Everybody faces financial emergencies at some point in their lives. Therefore, it is essential to maintain a good credit score to qualify for a personal loan. It is also advisable to keep checking your credit score once a year to know your financial situation better. Considering customer priority and convenience, Buddy loan is there to offer you the best class experience in getting you a loan approved in a few minutes.
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People Also Ask:
Q. What is the best free way to check your credit score for Indians?
A. In India, many banks and lending institutions offer you their online portal to get your score checked in no time. Hence, you can use such online platforms to check your credit score.
Q. When can I check my credit score if I just got my first credit card?
A. You can check your credit score after 2 months of receiving it or depending on how much you use the line.
Q. How can I check my credit score without affecting it?
A. No matter how many times you check your credit score, it won’t affect it. The factors that might impact the credit score entirely depend on the types of inquiries that are made. For example, lenders and banks make hard inquiries to determine your credit history can negatively affect your score. However, the queries you make have no adverse effects on the score, and it is known as a soft inquiry.
Q. Can I get a credit card with a 670 credit score?
A. Yes, 670 is a decent score to have, and you can get access to any credit card from any bank or lending institution.
Q. What is my credit score if I have no credit?
A. Your credit score will be displayed as NH or NA if you don’t have a credit history.
Q. How to get a good credit score?
A. You can achieve a good credit score by practicing timely payments of debts and credit bills