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All about your Credit Score.
In Todays era, Credit score plays an important role in overall personal finance related issues. If due to one reason or other, your Cibil Score is down, you will face problem in getting loan, credit card or other loan facility from any bank or NBFCs. You must be aware that how much Credit Score is considered as Bad, Good, Better or Best.
If you apply for any bank loan, bank will first extract your credit score and then decide whether the loan can be granted to you or not.
The question arises in everyone’s mind that what to do in following scenarios:
- How much credit score is considered as good?
- When you have not taken any loan from any banks/ NBFC, then what will be my score?
- What are the benefits of having a good credit score?
- What if my credit score is showing bad but I have not taken any loan from any institutions or not defaulted in any.
- What to do in case I get my score deteriorated due to default in payment?
- How to get my score rectified from Cibil or like company?
- How to get my score rectified from Bank concerned where my loan is showing?
- From where I can get my credit score free of cost for checking?
- Where Can get free credit score of myself?
- If I am a guarantor, whether it will be shown in my CIBIL?
So, lets start discussing each point one by one:
1. How much credit score is considered as good.
Credit score of any person ranges between 300 to 900. The score above 750 is considered as good and score between 550 to 750 is considered as moderate and below 550, it is considered as bad.
Most of the banks prefer cibil score between 650-750.
2. When you have not taken any loan from any banks/ NBFC, then what will be my score?
When you have not taken any loan from any bank or NBFCs, then you will have score as -1 which is considered as there is no history available in credit bureau to know your credit discipline Although, some thought it to be bad to have no credit history but majority of the banks accept this score and process the loan. The -1 score is not a hinderance in sanctioning of your loan.
3. What are the benefits of having a good credit score?
Nowadays, it is considered as a reputational issue to have a good credit score and somewhat connected to your financial discipline. It also gives us a sense of integrity and loyalty of a person having a good credit score. By the way, if you are in thought of taking any type of loan from banks/ NBFCs, good credit score can help you to get best interest rate and power to negotiate with the banks. Almost all the banks have slab wise interest rates for same loan and give priority to persons with higher credit score.
4. What if my credit score is showing bad but I have not taken any loan from any institutions or not defaulted in any.
If by any chance, you get to know that your credit score has been deteriorated due to any technical issue and you have not taken any loan from any insitutions, you may directly contact to the credit score company through their call centre or henpdesk mail id to correct the score related to your PAN Number. They help the consumer to get the updated credit score after validating the facts from banks or NBFCs.
5. What to do in case I get my score deteriorated due to default in payment?
You must immediately contact the bank and ask them to reschedule your loan account or pay the overdue to improve your credit score. In case the mistake is from bank’s side, ask them to get the overdue corrected by contacting score company.
6. How to get my score rectified from Cibil or like company?
If you come to know that the fault is from CIBIL or similar company, they all have their contact details and toll free number from where you can get your score updated and it will be reflected in next 15 days.
7. How to get my score rectified from Bank concerned where my loan is showing?
If you have taken loan from any bank and due to default in loan, your credit score has gone bad, you may get in contact with respective bank and either regularise your account or ask them to reschedule the loan so that overdue is removed and your credit score will be upgraded.
8. From where I can get my credit score free of cost for checking?
Nowadays, there are many portals/ websites which are providing facility to generate your credit score free of cost. Simply by searching free credit score in google, you will get links for the same. Kindly confirm the genuineness of the website or open the known websites only as you have to enter various personal data while fetching your credit score.
9. Where Can get free credit score of myself?
I am providing you the link of free credit score from a page of a Public sector bank. https://www.pnbindia.in/Free-Credit-Report.html
10. If I am a guarantor, whether it will be shown in my CIBIL?
A guarantor is equally liable to ensure the repayment of the loan. Hence the details of guarantor is also captured in CIBIL and if principal party defaults in paying the debit, the CIBIL of guarantor will be also be effected.
Thanks a lot for your patience reading…
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