A credit score is a number that determines how much funds you are eligible to borrow. People who have credit for at least 6 months to a year have a score, which ranges from 300 to 900 in India. A credit score of 750 or more in consideration is exceptional. A score of 700-750, on the other hand, will be judged satisfactory. A score below 650 points, on the other hand, in consideration is bad. When asking for a loan or a credit card, lenders will verify their credit ratings. You should do a fast credit check before applying. You are doing a soft inquiry when you verify your CIBIL Score on the credit bureau’s official website. It might drop the score slightly, but only too few points.
Instances when to check credit score
If the credit score is poor and you have filed an application previously also without checking it, you should check it. The loan, credit card, or other application may lead to rejection by the lender. A frequent credit score review may, however, be necessary at other times.
Before opting for a loan or credit card
You should perform a credit check before applying for a loan or credit card. Because it helps determine the likelihood of receiving credit. A loan or credit card application may be accepted fast if the credit score is 750 or above. If it’s low, you’ll have to look at your credit report to see why. Due to non-payment of credit card bills and loan EMIs, credit ratings are often poor. As a result, if you have a poor credit score, you must improve it before applying.
Before switching your present loan
Before switching your present loan to a new lender with a lower rate, check your credit score. You may be able to negotiate a cheaper interest rate if you have an excellent credit score. Check your credit score after you’ve completed the transfer to see whether it’s altered. Each time you apply for a loan, a hard query is made on your credit report. Each hard inquiry, if the lender rejects the application, has the ability to harm the credit score.
Paying off a loan
Paying off a loan, for example, might be a big relief. But do you know what impact it will have on your credit score? It all depends on your credit history and the credit company you’re working with. A credit mix with more secured loans may assist in increasing credit ratings if the portfolio is more unsecured.
After debt settlement
A debt settlement agreement is reached when a lender and a borrower agree on a lower payment than the initial loan amount. You are no longer liable for the debt, but your credit record will be shown as settled. If you have enough money, you can get the tag removed if you pay out the whole debt in the future. You can request payment of the outstanding late amount at the lender’s branch. You’ll be able to see your credit report and calculate your credit score after that.
CIBIL score on Wishfin
Many credit bureaus now provide credit ratings, such as CIBIL in India. CIBIL is a very known India’s credit bureaus, owing to the fact that it contains the country’s biggest collection of loan and credit card data. Wishfin, a Transunion CIBIL approved partner, provides a free CIBIL score check. To verify your CIBIL score on Wishfin, simply follow the steps below.
- Mention your contact information, including your name, email, ID, and phone number.
- Fill up your PAN number.
- Select Gender to accept the Terms & Conditions.
- Then press the ‘Submit’ button.
- Following that, your CIBIL score will appear on the screen.
Several pros to having a good credit score
- Lower interest rates: A strong credit score qualifies you for a low-interest rate since it offers the lender trust in your debt management abilities.
- Attractive Credit Card Discounts: If your credit score is good, lenders will give you a credit card with a lot of perks, such as large cash back and points on online and offline purchases, tempting dining offers, and travel benefits.
- A speedy approval: When your credit score is strong, loans and credit cards are approved more quickly.
- Negotiate with your lender: If you have a decent credit score, you may be able to negotiate with your lender to increase your loan limit or decrease your interest rate.
- Establish a positive credit history: It contributes to the impasse.