Get your Credit Score for free

A credit score checker is a valuable tool or service that allows individuals to check their credit scores, which is a 3 digit numerical representation of their creditworthiness. 

By using a credit score checker, individuals can monitor their credit scores, identify potential errors or fraudulent activities, and make informed decisions about applying for loans or credit cards. Your creditworthiness is expressed as a three-digit numerical expression.

Your creditworthiness is expressed numerically. A higher score increases the likelihood of being approved for credit or loans with better rates and terms. For instance, a Cibil score of at least 750 is recommended for credit card applications.

A person's creditworthiness is statistically represented by their credit score. It aids in determining your capacity to repay the sum you borrowed. A person's credit score typically varies from 300 to 900, and the applicant with the highest score is seen as being reliable. 

It's advantageous to have a high credit score when applying for loans or credit cards, as it leads to better terms and interest rates. In contrast, if your score is low or you fall into a lower range, it indicates you are an irresponsible borrower and have not paid your loans or other obligations on time.

Credit score ranges and what it determines.

Credit bureaus gather these data to determine a credit score, which includes;

• Personal information
• Credit history length
• New credit
• Amount owed
• Payment history
  
• Credit mix
  

Maintaining a high credit score is crucial for various reasons. Here are some of the key benefits:

• Increases Loan Eligibility: A high credit score indicates that you are a responsible borrower who makes timely repayments. As a result, you are more likely to be approved for a loan quickly
• Faster Loan Approvals: With a strong credit score and lengthy credit history, you can access pre-approved loans, and your loan request is granted promptly with no processing period
• Low-Interest Rates: If you have a high credit score, you can benefit from lower interest rates on your loans, which can save you money in the long run
• Access to Credit Cards with Attractive Rewards: With a good credit score, you may qualify for credit cards with enticing perks and rewards
• Higher Credit Card Limits: A solid credit score demonstrates your ability to manage credit responsibly, which can help you qualify for higher loan amounts and credit cards with higher limits and better interest rates
  

In summary, maintaining a high credit score is essential to increase your loan eligibility, get faster loan approvals, benefit from lower interest rates, access credit cards with alluring rewards, and qualify for higher loan amounts and credit card limits.

The Credit Bureaus take into account the following elements when calculating credit scores:

• Credit history: This includes information about your account number, credit usage, and any missed or late payments
• Credit score inquiries: This comprises details such as the kind of loan you are interested in, the amount you are applying for, and whether you are applying individually or jointly
  
• How much you owe: This factor contributes 30% to your credit score and depends on how much you owe on credit cards and loans
• Credit history length: A long history of on-time payments leads to a higher score, and it makes up 15% of your credit score
• How many products you have: This accounts for 10% of your credit score and can be raised by using various goods, such as installment loans, house loans, and credit cards
  
• Credit activity: The remaining 10% is based on your most recent credit activity, including starting or applying for multiple accounts, your repayment history, the types of loans you have applied for, and how much of your credit limit you have used up
  

A credit score of 700 or more is regarded as being good. Before approving a loan, creditors consider the credit score. When someone requests a loan, lenders investigate —

• CIBIL report and score
• Employment status
• Account information
• Payment history
• EMI-income ratio
  

Given that you are aware of the importance of keeping a high credit score and the variables that are taken into account while calculating the score, the following simple steps can help you do so:

• Pay your loan installments on time.
• Pay your bills on time and avoid exceeding your credit limit.
• Pay off any outstanding debts or bills.
  
• Avoid submitting multiple credit card or loan applications.

Credit bureaus use "000" and "STD" codes to represent the repayment status of a loan or credit account. 

• "000" indicates that the account is in good standing and has been paid on time. 
• On the other hand, "STD" stands for "Standard" and means that the outstanding dues have been paid on time or within 90 days of the due date.

To find dues in your credit report, get a copy of it from a credit bureau like CIBIL and search for accounts with late or missed payments, collections, or charged-off accounts. Any month with status other than “000” and “STD” represents late payment. Review your report, dispute errors, and keep an eye on your loan and credit card payments to ensure timely and full payments each month.

Frequent address changes won't affect your credit score but may impact your ability to get credit as lenders prefer stable personal details. Frequent address changes may raise a red flag in your credit report, indicating instability.

Derogatory remarks in a CIBIL report are negative comments by creditors regarding a borrower's creditworthiness. They include late payments, defaulting on loans, outstanding debts, or legal action taken against the borrower. Derogatory remarks can impact a borrower's credit score and overall creditworthiness, making it difficult to obtain credit. Review your CIBIL report regularly to ensure no inaccuracies or derogatory remarks affect your credit score.

If a lending institution has pulled your credit bureau report without your consent or knowledge, you should immediately raise a dispute with the credit bureau. You can also file a complaint with the lending institution and request that they remove the inquiry from your credit report. It is important to monitor your credit report regularly to ensure that there are no unauthorized inquiries or inaccuracies that could negatively impact your credit score.

If you see loans without your knowledge in your credit bureau report, you should first contact the credit bureau and the concerned lender to raise a dispute and request them to investigate the matter. They are required to investigate and respond to your dispute within a specified time frame.