How is the Credit Score Calculated: Credit score plays the most important role in getting you a loan. Those who have a bad credit score find it difficult to get a loan. The credit score ranges from 300 to 900. Generally a credit score above 750 is considered good. Those who have a higher credit score are also more likely to get a loan. But do you know how the credit score is finally determined? This is what we will tell you today.
- The credit score of customers is determined by several credit bureaus.
- Major credit bureaus include Trans Union CIBIL Experian, CRIF High Mark and Equifax.
what do credit bureaus
- Keeps a record of your monthly bill and loan installment payments.
- He calculates your credit score on the basis of a few years’ records.
p style="text-align: justify;">Credit Utilization Ratio
- Credit Utilization Ratio ie CUR means that the credit limit of your credit card is how much you use in a month.
- CUR has a great impact on credit score. Your CUR depends on how much you use your credit card.
- The more you use your credit card, the higher your CUR.
old credit card
- Having a very old loan or using a credit card for many years is considered good in terms of credit score.
- Actually it shows that you are using the loan properly. You pay the installments on time.
Don’t apply repeatedly
- Do not apply for loan or credit card repeatedly.
- This is not considered good in terms of credit score. This reduces the credit score.
Make loan payments on time
- Repay the loan EMI regularly and don’t miss it.
- If you make a late payment or default once, this will increase
- Credit score 100 points
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