FREQUENTLY ASKED QUESTIONS

WHAT IS A CREDIT SCORE?

Credit Score is a 3 digit numeric summary of your credit history, derived by using details found in the ‘Accounts’ and ‘Enquiries’ sections on your Credit Report and ranges from 300 to 900. The closer your score is to 900, the higher are the chances of your loan application getting approved.

HOW IS MY CREDIT SCORE DETERMINED?

Credit scores use information from three key areas of your credit report: account information (such as credit cards, auto loans, student loans, mortgages, and rent), public records (such as judgments or bankruptcies), and inquiries (requests by lenders to view your credit). 

HOW CAN I IMPROVE MY CREDIT SCORE?

You can improve your Credit Score by maintaining a good credit history, which is essential for loan approvals by lenders. Follow these 6 steps which will help you better your score:

• Always pay your dues on time.

• Keep your balances low.

• Maintain a healthy credit mix.

• Apply for new credit in moderation.

• Monitor your co-signed, guaranteed and joint accounts monthly.

• Review you credit history frequently throughout the year.

IMPORTANCE OF CREDIT SCORE?

A credit score is important because it is the first thing that lenders check to see if you are eligible for a loan. There are 2 ways that credit scores are checked

1. Soft pull: In this case, the Financial Institution obtains an individual’s credit score from other means. For example, you can download your Credit Score from Kredits.in and it will not affect you. 

2. Hard pull: Here the individual applies for a loan in which case the Financial Institution has been given explicit rights to pull the applicant’s credit score and report which will affect your credit score.