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Support / Credit Score
Support / Credit Score
After every 30 days, refresh is available and the latest Credit Score can be fetched.
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. It is one of the major factors that is taken into account by the commercial banks and lenders before offering loans and credit cards. A Credit score within the range of 700-900 is considered a good Credit score. The closer your score is to 900, the higher are the chances of your loan application getting approved.
The 5 major factors that affect your credit score are: Credit Utilization: It measures utilization of your available credit card usage. Total available spending limit across all your credit cards is considered. Strive to maintain healthy credit utilization. High utilization has an adverse impact on the score. Payment History: It shows the % of credit card and loan repayments made on time in the past 36 months. Timely payments help in building your credit score. Age of Credit Accounts: It shows the average age of all your credit accounts. It considers when you opened your first credit card or loan account. Good credit performance over a longer time helps to build your credit score. Credit Mix: It measures how well you manage all your credit accounts: personal loans, educational loans, home mortgages, credit cards, and others. An optimal mix of secured and unsecured credit products has a tonic effect on your score. Number of Credit Inquiries: It counts recent inquiries made by financial institutions on your Credit profile. This is when you attempt to open new credit accounts. Too many new accounts or requests in a short period of time temporarily lowers your credit score.
When you apply for any kind of credit, whether it be in the form of credit cards, loans, or mortgages, your credit score is the most crucial factor. A good Credit score makes it easy for your credit requests to be approved and also enables you to receive lower interest rates than the market. With a solid Credit score, you can also easily increase your credit card limit and be approved for larger loans.
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 improve your score: Always pay your dues on time: Late payments are viewed negatively by lenders. Keep your balances low: Always be prudent to not use too much credit, control your utilization. Maintain a healthy credit mix: It is better to have a healthy mix of secured (such as home loan, auto loan) and unsecured loans (such as personal loan, credit cards). Too many unsecured loans may be viewed negatively. Apply for new credit in moderation: You don't want to reflect that you are continuously seeking excessive credit; apply for new credit cautiously. Monitor your co-signed, guaranteed and joint accounts monthly: In co-signed, guaranteed or jointly held accounts, you are held equally liable for missed payments. Your joint holder's (or the guaranteed individual) negligence could affect your ability to access credit when you need it. Review your credit history frequently throughout the year: Monitor your Credit Score and Report regularly to avoid unpleasant surprises in the form of a rejected loan application.
There are a number of factors that might affect your Credit Score, but the most significant factor is missing any loan EMI or credit card payment due dates. Utilizing your credit limit excessively can potentially lower your score. Additionally, applying for many credit cards or loans in a short span of time will temporarily reduce your score.
PurnPay fetches the Credit Score from the Credit Bureau. If there stands to be any discrepancy or missing item in the Credit report, the consumer can click on the following link and directly approach the Credit Bureau to raise any dispute.
Banks and Financial institutions ask for a guarantor for certain loans as a means of security for the loan amount they provide. A guarantor on any form of loan is equally responsible to ensure the repayment of the loan. Hence, the guarantor provides a guarantee to the lender that he will honor the obligation in case the principal applicant is unable to do so. Any default on the payment of the loan by the principal applicant, will affect your Credit Score as well.
It is important to note that even if the primary card holder is responsible for payments for charges incurred on both the primary and add-on credit card. Any default made in payments shall reflect in the Credit Report of both the primary and add-on card holder.
No, the credit score does not go down if checked routinely. If anything, it reduces any unpleasant surprises on your credit status tomorrow. Therefore, it is highly advised to check your credit score each month and maintain good financial standing.
