A credit score is a scale of creditworthiness. It is measured for a person or an organization as a number between 300-850. The higher the score, the better a borrower looks to a potential lender. The primary factors contributing to it include:
- Payment history
- Total amount owed
- Types of credits, etc.
With these in consideration, you can boost your credit score in the following ways:
- Pay your bill on time
- Up your credit line
- Maintain older credit cards to lengthen credit history
If you haven’t borrowed before from a financial institution, your CIBIL score will be low. The above-mentioned method can help process high loan amounts with low-interest rates.
FAQs
Can you secure a loan with a poor credit score?
No, you cannot secure a loan with a poor credit score.
Will my credit score get affected if I secure a personal loan?
In general, securing a personal loan causes a slight dip in your credit score. However, when repaid on time and in full, it can in turn reflect positively on your overall score.
How do I check my credit score?
You can check your credit score for free for the first time on Equifax.
Is credit score and CIBIL score the same?
Credit Information Bureau (India) Limited (CIBIL) is a credit rating agency that provides your credit score. Essentially, credit score and CIBIL score are the same but the latter will be the credit score that CIBIL provides.
