You are awarded a score for your good and misdeeds, irrespective of the stage of a lifecycle you may be in. From schools, colleges to even an office, the score is omnipresent. You can’t get away from it even if you want to. That even applies to when the time for a loan arrives. Yes, when you apply for a loan, your credit score is checked and evaluated by the lender.
You can also check your credit score and that too online, saving a lot of time and effort. A lot of queries regarding how to check credit score online has cropped up in the recent past. So, let’s read the article which details on the ways to check your credit score.
Who Assigns Credit Score?
Credit scores are assigned to individuals with a credit record of at least 6 months to a year. Credit information bureaus such as CIBIL, Experian, Equifax, etc. All these bureaus work on different credit algorithms before assigning a credit score, a barometer to assess your creditworthiness. However, the basics employed by these bureaus can be pretty much the same.
How Can You Check Your Credit Score?
You can check your credit score by visiting the website of the credit information company. All you need is to furnish personal and credit-related details to sign up with the credit bureau, which on verifying the details online will allow you to create credentials for login.
You thus need to choose a User ID and password that can meet the requirements in terms of alphabets, numeric and special characters. Once your login is created, checking the score would be two entries and a click away. You can check your credit score free once a year. If you do it more than once, it will cost you ₹500 and more. Plus, checking the score frequently can bring it down. So, better not check the score frequently to be in a good stead.
What is a Good Credit Score and How Can You Achieve It?
Ideally, a credit score, which ranges from 300-900, should be above 750 to make lenders accept your application. A credit score from 700-750 can also result in the approval. But there is every possibility that the interest rates or the credit limit may not appeal you that much. An economical interest rate holds key to effect a smooth repayment from your side. Plus, a higher loan amount can prevent you from asking monetary help from your relatives or friends.
To achieve a good credit score, you need to be mindful of the following cardinals.
Timely Payment – Maintain a habit of paying the dues on time to ensure the credit score goes up all the time. To ensure a timely payment, you need to plan your finances efficiently, prioritize your spends and work ruthlessly to ensure those.
Full Payment of the Dues – You should look to pay off the dues in full on time as it reflects positively to your credit score. So often, the credit card issuers generate a statement wherein the teaser of minimum due is shown, apart from total dues and due date of payment.
Now, the minimum due accounts for around 5% of the outstanding balance in a particular billing cycle. Obviously, the 5% would count very little and affordable at the same time, particularly when the total bill amount goes beyond the level of comfort.
The minimum due amount can tempt you, right? But there’s a danger of interest and taxes raising your outstanding balance if you choose to pay minimum due. So why to create such a situation wherein you need to settle for a minimum due option and pay unnecessary interest & taxes to get the outstanding notch a lot higher than you would like?
Excess Credit Limit Utilization – So often the habit of impulsive spends can draw you to use more of the credit limit offered on your credit card. Passing the roadside, you can view the spectacular accessories and go all out to buy even if it’s not your need. Doing it repeatedly can chop off a lot of credit and thus pull down your credit score. So, the need of the hour is to use the credit efficiently to keep up the credit score meter.
So, you have gone through the article telling you the ways to check your credit score. Plus, it has detailed on the tips to raise your credit score over time.