Frequent Questions about Credit Score6 min read
Credit Card is a prime factor in getting your loan sanctioned and is used by the Banks to know the applicant’s creditworthiness. It is very important to build a credit score and here are the top 5 asked questions about Credit Score answered.
We all are today aware that maintaining a good Credit Score can help us, as customers, get cheaper interest rates on loans and great offers on Credit Cards and availing Bank Loans. Banks and NBFCs (Non-Banking Financial Companies) across the country use the Credit Score of applicants to analyze their creditworthiness. Hence, it is crucial for everyone, as potential borrowers of credit, to maintain a good credit score.
And, since it is important for us to maintain a good Credit Score, it is necessary that we keep an regular tab on our score for better evaluation.
Still got some questions regarding the Credit Score? No worries! We’ve picked and answered the top five commonly asked questions about Credit Score. Hope this helps!
Will I get a loan quicker and at a low-interest rate if I have a good Credit Score?
Although lenders banks look at your Credit Score before considering your personal loan or Credit Card or any loan application, they also look at a number of other factors too, such as your salary or income, employment history and so on. But you can be assured that if your Credit Score is good, the chances of loan refusal are less and you’ll get better rates than a regular loan.
Additional Reading: A guide on Pre-Approved Personal Loans
I have never applied for or borrowed from a Bank. What will be my Credit Score?
If you do not own a Credit Card or have an existing loan to date, then you will not possess any credit history to show. And, of course, your Credit Score will be low. Lenders are usually quite apprehensive about lending to new credit applicants as there is no way for them to realize their credit behavior. While we are not encouraging you to borrow unnecessarily, it wouldn’t hurt to get yourself a Credit Card. Having a credit history is extremely helpful for your future.
Click here to apply for a Credit Card
There are some wrong reporting in the Credit Report. How do I correct them?
Don’t panic. It is pretty simple. Once you’ve observed the error in your credit report, simply get in touch with the lender who has updated the wrong info, request them to correct the same and forward the rectified info to the credit bureau. It should be corrected by the credit bureau or agency within three days after receiving notification from the lender. Do keep in mind that credit bureaus do not make any changes on their own accord, so you’ll have to get in touch with the respective lender or the bank to make changes.
Can I improve my Credit Score?
Absolutely, Why not?. While you’ll not see a sudden improvement in your Credit Score, it will gradually increase if you stick to paying your dues on time and stay away from borrowing from lenders too often. Do not forget that just applying for a loan or Credit Card, irrespective of whether you get the financial product or not, is taken as a hard inquiry and reflects on your score. So, apply for a credit product or a loan only when it is necessary and steer clear from multiple applications in a short span of time which will highly impact your scores.
Do I need to regularly check my Credit Score?
Regularly checking your Credit Score or pulling your credit report does not impact your score. But it’s a paid amenity. However, as a practice, we’d suggest that you check your score at least twice a year without fail. Also, it is always good to check your score before you apply for a credit product, so you can be sure of your chances of approval.