Planning a trip to an exotic location in New Zealand or wanting instant funds to serve the emergency needs? Seeking a loan to fulfill all that? Well, you can get a loan to do so and that too, with the liberty to choose from several banks and non-banking finance companies (NBFCs) packed with attractive interest rate deals. When you apply for a loan, the financial institutions check your credit score, which then becomes the reasons for approval and rejection of your application.
Just in case, the application gets rejected, how would you feel? Bad, won’t you? You can check your credit score in advance. It may not, though, guarantee you a loan. At least, you can get a feel for your credit profile doing so. But don’t do repeatedly as the score goes down rapidly. Normally, when you check your scores, it cost you around ₹500 or more.
A paid service can discourage you from checking the scores! However, there are some websites, which in partnership with the credit information companies, provide credit scores free of cost. Let’s explore Free Credit Score India concept in this article.
How to Check Your Credit Score Online?
You can visit the websites of Fintech majors to check your credit scores online. All you need is to enter a few details related to identity and residence. The details would include your name, date of birth, PAN Number, mobile number, e-mail ID, and address. As soon as you are done with that, you must click on ‘Submit’ button to know the scores and the credit report.
What if You Can’t Access Score and Report?
You first need to upload your KYC details before getting the login credentials on your address post the successful verification of the documents, which could take around 7 working days to complete. Within a few days from the verification, you can receive a free credit score and credit report. Any discrepancy in KYC documents will be notified to you via an e-mail and SMS.
How is Credit Score Calculated?
Banks and other financial institutions report your credit-related activities to credit information bureaus like CIBIL, Experian and a few more. Bureaus, upon receiving the details, analyze the case thoroughly and prepare a matrix based on your credit behaviour. The score will be determined on the basis of an individual’s credit behaviour.
Read Also: How Can You Check CIBIL Score by PAN Card
Bureaus also send credit reports which contain exhaustive information regarding the credit health of an individual. The reports would show how efficiently or poorly you may have serviced the debt, notify any late payment incidents, if any, etc. You may also get an advisory on how to maintain a good credit health for an outright ‘Yes’ to your loan application in the future.
Factors That Impact Credit Score in India
Keen to know the factors that influence your credit score? Check out the pointers below.
Loan or Card Default – The constant default on loan or credit card repayments brings down the score considerably. One of the prime reasons for default would be the excessive spends you could make month-on-month. To prevent such incidents, it’s necessary to prepare a budget and make plans to adhere to it. Figuring out the needs is vital to stay within a budget. Don’t chase for everything, instead check whether that can be done away with, to yield the much-needed savings to pay for the EMIs and dues.
Debt Settlement – Debt mounting and going out of your ability to pay back? Mulling debt settlement on a friend’s advice? Well, it does cut down the liability. But it would wreak havoc in your credit life by bringing down your score, which would mean a tough road ahead if you want loans in the future.
So, you have got an idea of a lot surrounding the credit scores from getting them free to the factors impacting the same. Refrain from default to keep your scores moving up all the time, which eventually results in smooth approval to a loan application.