You are always judged on the basis of a score, doesn’t matter whether it’s about school, college, office or even when you are servicing a debt. You simply can’t get away from a score. Talking about the credit life, what matters is a solid credit score that not only convinces lenders about your repayment capability but also ensures a smooth approval to your loan or credit card application.
The lenders’ desk is often found to be loaded with loan and credit card application files. Even though they want maximum files to get an approval but only a few see the light of the day. The maximum applications often get rejected on account of a poor credit score.
Those being aware of the situation often get to know their credit score and experience a hassle-free approval. However, there can be many not knowing the importance of a credit score, which if bad, can seriously dent their loan or credit card prospects. So, you must check credit score to be at least know where your credit lifecycle is heading. However, don’t check it regularly as the score can fall doing so. Let’s concentrate on those simple ways by which you can check our credit score.
How to Check Credit Score?
Before checking your credit score, you first need to be aware of who assigns it. Without keeping it a secret, let’s be told that there are a handful of credit information companies that assign credit scores to individuals with a credit history of 6 months to a year. These companies include CIBIL, Experian, Equifax, etc. Although checking credit scores vary across these platforms, the method remains quite similar. What’s common across all these platforms is a login that you need to create by sharing relevant personal and credit details.
Now, these details can be your name, date of birth, residence address, debts serviced or servicing, the rate of interest, loan or credit limit, etc. Post the successful verification of the details, you can create a login selecting a User ID and password of your choice but that should have the requisite characters, numeric and alphabets. After the login is created, you just need to go online to check your credit score.
What’s the Desirable Credit Score?
Credit scores, which you can check online, remain in the range of 300-900. Talking about the desirable credit score, it should be more than 750 to give yourself the best chance to gain the lenders’ nod for a loan or credit card. On achieving such a score, the loan or credit card terms can get a lot more friendly than those below 750. It won’t be a surprise to see you getting an attractive interest rate and bagging a higher loan amount with a score of 750 and above.
The World is Not Over Even if You are Way off from a Good Credit Score
Quite possible that you may find a poor score on checking it online. Don’t be disheartened, know the root cause of it and devise an action plan to improve your score. Now the following reasons can lead to a poor credit score. Within the reasons, the recommendations are also suggested. Take a look.
Failing to Pay Dues on time – Quite often the habit of paying loan or credit card dues after the due date leads to a poor score. Well, some do it intentionally, others get caught in the trap of injudicious spends and fail to pay on time. Those doing it intentionally better stop so that the future needs are not at stake. Make sure to prioritize your spends in a way for a smooth repayment experience.
Excessive Credit Utilization – Often the impulsive spending behaviour leads us to utilize a lot of credit from our credit cards. The excessive credit utilization does create an impression that a default from you is around the corner. So, exercise control over your impulsive behaviour and ensure a credit utilization ratio of around 50%.
Resist from Making Too Many Applications – One, despite facing rejections, kept applying for a fresh debt. What happens is that the score goes down rapidly. You need to maintain a reasonably longer gap between two debts if facing rejections all the time.