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  • How to Improve Credit Score

    Credit Score plays an important role when you apply for a credit card or loan. It is a 3 digit number that reveals the creditworthiness of an individual to banks and other financial institutions.

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  • Credit Score is calculated using your credit history, which contains information such as your payments history, number of loans or credit card used by you, etc. In India, there are 4 major Credit Information Companies, namely CIBIL, Experian, Equifax and Highmark.

    A high credit score increases your chances of getting a loan or credit card and a low score completely ruins it. Banks do not like to give loans or credit cards to people with a low score because they do not trust them with their money. Despite having a low score, if you get a card or loan, then your credit limit may be low or you might have to pay a very high rate of interest. To prevent this, you must improve your credit score.

    Ways to Improve/Repair Credit Score:

    There are different ways using which you can repair your credit score. Some of them are as follows:

    1. Check your Credit Report

      One of the important things that you must do to improve your credit score is check your credit report. Doing this will help you in identifying errors in your report. If you find mistakes in your report, you must get it rectified immediately. As the credit score is calculated based on the information mentioned in the credit report, it is very important for you to ensure that this report is free of errors.

    2. Pay outstanding bills

      If you have any outstanding credit card bills or loan, you must pay it off immediately to repair or improve your score a bit. Payment history is one of the factors that is taken into consideration while calculating the credit score. If you have a history of delayed payments, then your score will be low and vice-versa. It is a good idea to activate payment alerts or auto debit facility to ensure that you always pay your credit bills or EMIs on time. Also, avoid paying only the minimum amount due on your credit card always as it will increase the outstanding balance of your card. Try to pay the full bill to keep the outstanding amount low.

    3. Credit Utilization

      It is another major factor that is considered while calculating the credit score. The amount of credit that is available to you versus how much of it you are using shows your dependency on credit money. It is advisable that people keep their credit utilization below 30%. So, if you have multiple credit cards, keep a check on how much money you are using on credit. Also, try to find a credit card issuer who will accept multiple payments in a month.

    4. Do not remove old accounts from report

      Some people tend to remove old accounts or deactivated accounts or accounts with negative history from their credit report to make it look good. Some even try to get their old debts removed from their reports once they pay them. This may not be a very smart thing to do. Agreed that negative things are bad for the score, but they are automatically removed from the credit report after a period of time. Getting old accounts removed may harm your score a lot as they may have a good repayment history. Also, if you have paid your debts, then you should keep them in your report as they will improve your score and also show your creditworthiness.

    5. Plan your credit

      Many people whose scores fall drastically are ones who do not plan their finances well. If you apply for too many credit cards just to increase your credit limit, but are unable to pay the bills off on time of all of them, then you will be left with a huge outstanding balance and history of delayed payments that will decrease your score by a lot. Also, applying for unplanned loans can leave you in a very bad financial state, if you are not able to repay them. Thus, it is important to plan credit and apply for a credit card/loan only if it is absolutely required and when you are sure that you will be able to repay the amount you borrow.

      Credit score cannot be repaired in a day or two. It requires time, patience and planning. Once your credit score improves, try to not make any mistakes that will harm it. If you do not have a credit score at all, then try to build it by applying for a regular or secured credit card.

    6. Limit the number of hard inquiries

      There are two kinds of inquiries that can be performed- a hard and a soft inquiry. A soft inquiry is when you check your own credit. When potential employer looks through your credit, or if any checks are carried out by financial institutions (which you already do business with), these are called soft inquiries. Soft inquiries do not affect your credit score.

      A hard inquiry is what happens when you apply for a credit card, or a loan. Hard inquiries that take place once in a while will not affect your credit score.However, many of these within a short time span will affect your credit score. Banks will take this to mean that you require money because you have a facing financial problem.

    7. Consolidate your debts

      If you have too many debts that are, you could actually use this to your advantage. You can take out a debt consolidation loan from your bank or a credit union. You can them simply pay them off. You will only have to make one payment. Keep in mind that if you can a lower interest rate on your loan, you can pay down the debt faster.

      Another way to consolidate many credit card balances is balance transfer. Some cards often have a promotional period during which they charge 0% interest on the balance on your card. However, the balance transfer fee can cost you between 3% to 5% of your amount.

    Top 10 things to know about your Credit Score

    Once indebted, you are under close watch by financial institutions. No transaction made by you in the credit market will go unnoticed, and the same is recorded and maintained in your Credit Score. The scores may range anywhere from 300 – 900, 300 meaning you have an appalling score and 900 meaning that you’re every lender’s dream customer.

    Although simple to comprehend, there are a lot of myths revolving around it. Here are 10 facts regarding Credit Scores.

    • Your Credit Score has nothing to do with your income, savings or investments. It is simply your debt activities and credit history, all summed up into a number that can usually articulate whether you’re a good debtor or not.
    • Checking your Credit Score does not affect the score itself. So, don’t worry about the score declining, check your Credit Score here.
    • Although defaulting your payments are reflected in your Credit Score, no data will be published on public forums. Only companies enquiring about a certain individual will receive the score.
    • Closing an active or inactive credit card will reflect in your Credit Score. It may either decline or incline but the reason for the change in the score will not be mentioned.
    • Your Credit Report can’t be edited or altered. The score will be updated as and when you perform a financial activity. From closing an account, defaulting on your payments, repayment, or any other activity, your score will be reflected accordingly. But, no alterations can be made on your report.
    • Credit scores are only the first impression of you to a lender and not the sole dictator of your loan approval. Different institutions and lenders have different screening processes to approve a particular loan.
    • As opposed to the common myth, you cannot apply for a credit score. If you’ve had a loan account, a credit card or have applied for a loan, your credit score will be available to credit companies.
    • Payments defaulted more than 3 years ago will not be taken into consideration while determining your Credit score. So you don’t have to worry about the payments you’ve defaulted on several years ago.
    • Taking too much credit can be detrimental to your credit score. Even though you may make your payments on time, an excessive credit will cause damage on your score.
    • Your credit utilization ratio too affects your credit score. The closer you come to your maximum limit on your card, the more likely you are to cause damage to your score.

    Why to Manage Credit Score and Credit Reports

    Do you think a good Credit Score is essential only for obtaining a banking product? Not surprisingly, it is equally important for less perceptible requirements such as getting an employment offer and even renting a vehicle. Many people are aware of the concept of credit rating system. A credit score is basically a three-digit number that assesses how likely you shall be to repay a mortgage. It utilises data from credit reports to comprehend the risk of bad debts. A credit report is a detailed description of your credit history. There are few more companies in Indian which do the same task- CIBIL TransUnion, Equifax, Experian and High Mark.

    Why Credit Management?

    • A power credit history will keep you well-rated to be able to suffice the future banking requirements at a lower cost.
    • You will be picked up by premier financial institution for a better banking business.
    • It keeps you financially reputed throughout the banking business.

    Ideas to Establish Credit

    • Pay in time.
    • Apply for credit intelligently.
    • Review Credit Reports at regular intervals.
    • Maintain a long-run credit and bank account history.
    • Manage multiple mortgages wisely.

    Breakup of Factors Influencing Credit Score According to Experts

    • Average length of credit history -15%
    • New credits - 10%
    • Multiple accounts owned - 10%
    • Loan quantity- 30%
    • Payment history - 35%

    Know the Importance your Free Credit Score

    An excellent credit score enhances your chances of being pondered for a mortgage, especially for a home loan. You are more likely to get lower interest rates on mortgages and may negotiate a lower insurance rate. The current home mortgages can be refinanced to a lower interest rate. Bankers may offer a lower processing fee and a flexible repayment option.

    Factors Impacting your Credibility Positively

    • Periodic EMI payments
    • Managing financial aspects properly
    • Using credit cards fairly
    • Ensuring the correctness of Credit Reports

    Did you know?

    • Many factors influence a credit score. It is interesting to notice that the category of credit you currently have, for instance, vehicle loans, education loans or personal loans, have an impact.
    • People tend to consume the overall credit limit allowed for a credit card. But, the ideal credit utilisation ratio should not exceed 30-35%. If exceeds, it may hurt your credibility.
    • Carrying dues from month to month may ease your obligation. It is more likely to bring down the credit rating.
    • Do not settle a loan for less than the actual outstanding balance to keep your rating unaffected.

    Who will use my Credit Score?

    • Lenders to determine whether or not to give you a mortgage
    • Insurance agents to decide the premium to be offered to you
    • Employers to offer you a highly responsible position
    • Utility entities to decide whether or not collect deposit
    • Landlords to determine whether or not to rent a property

    These Two Things Hurt Your Credit Score the Most

    One of the most useful features of a credit card is the convenience of paying as well as getting the security. Thanks to these two factors, we have been witnessing a massive growth of credit cards.However, even though credit cards come with the convenience of buy now pay later, you have to make sure to be particular the repayments. A bad repayment history takes a toll on your credit score in a big way. Let’s understand how is your credit score calculated:

      • 35% - Payment History

      • 30% - Credit Utilisation

      • 15% - Age of Credit History

      • 10% - Type of Credit

      • 10% - Credit Inquiries

    All the aforementioned factors affect your credit score but the payment history and credit utilisation hamper your credit score the most. Let us now understand how credit cards impact these two factors.

    • Payment History
    • The chances of missing out on credit card payment are usually high and therefore you should be extra careful and remember the due dates. If you are not able to keep up with the payment due dates, it is better to come up with a simple foolproof way to avoid delay. You can either give standing instructions to your bank to pay off the bill from your savings account on a particular date. If you miss the due date or pay only the minimum due, your balance will accumulate interest. Any subsequent purchases on your credit card will also accumulate interest from the date of purchase. You also lose out on your interest-free period. Late payment of non-payment of bills hampers your credit score and brings it down.

    • Credit Utilisation
    • You should first learn how credit utilisation is calculated. Majority people are not aware that the higher your credit utilisation ratio, the larger effect it has on your credit score. As per experts, you should use only 20-30% of your credit limit. If you constantly spend a high percentage of your credit limit, say 60-80%, your credit utilisation ratio takes a hit. It’s important for you to keep the ratio low as it enhances your credit score. One way to tackle high credit utilisation ratios is to use multiple cards. As you already know that the 30% of your credit score comprises your credit utilisation ratio, you should be extra careful while using your credit card and always keep an eye on the credit limit.

    It must be noted that improving your credit score take time and patience and it cannot happen overnight. You have to follow certain discipline and work towards your financial goals to achieve the desired credit score.

    Who has access to your Credit Reports?

    Although not many people can access your credit report, a few individuals and institutions who legitimately requires it may have access to it. If a company has a genuine business requirement with you, it is safe to assume that they have access to your credit report and score. Here’s a list of some of the institutions and individuals that have access to your credit report.

    Banks – Quite naturally, banks can gain access to your Credit Report to gauge your credit worthiness. You don’t necessarily have to have a credit card for banks to have access to it. Your credit worthiness may be examined if you’re applying for a loan or even opting for an overdraft facility as this is considered to be a line of credit as well.

    Creditors – Anyone willing to loan you money will have to determine your credit worthiness before they put their faith in you. Credit card issuers and mortgage lenders are amongst a few that fall in this category. Determining your credit worthiness helps the creditor gauge if you’re capable of repaying the loan and helps the creditor determine the terms and conditions of the same. Generally, the better your credit score, the more likely you are to get a loan approved and attain favourable terms when it comes to repayment and interest rates.

    Insurance Companies – Statistically, it shows that individuals with poor Credit Score are more likely to file a claim. Insurance companies often measure your credit worthiness to determine how much they need to charge you for a new policy.

    Employers – Several employers now use credit reports to judge an employer’s honesty and integrity when it comes to finance. It can also be used to assess the risk of bribery pertaining to an employee as people with a lot of debt are more susceptible to bribery. In some cases, the reports can be a decisive factor when it comes to promotions and demotions.

    Government Agencies – Government agencies who have a legitimate requirement to pull up your credit score may do so. In the event that you’re applying for government benefits, court order, conducting business with the government, or any such instance, the government may pull out a report to understand your financial standing.

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    Credit Report Reviews

    • Experian
      "Quite friendly and awesome"
      0.5 5.0/5 "Blown Away!"
      It's amazing.. based on the report towards on my email.. I am able to reach to take further steps to close my dept. It's amazing.. based on the report towards on my email.. I am able to reach to take further steps to close my dept. Regards Francis
      Was this review helpful? 1791
      ,
      Reviewed on Nov 11, 2019
    • Experian
      Experian
      "nice"
      0.5 5.0/5 "Blown Away!"
      Good place to take personal loans and credit cards, fastrack applicationds but simply rejecting applications what the purpose my crdit score is 816 i did not got at least single prpproved they are continl distrub us for uploading but no use
      Was this review helpful? 1371
      ,
      Reviewed on Aug 21, 2019
    • Experian
      "Good place to take personal loans and credit card"
      0.5 2.5/5 "Just OK"
      Good place to take personal loans and credit cards, fastrack applicationds but simply rejecting applications what the purpose my crdit score is 816 i did not got at least single prpproved they are continl distrub us for uploading but no use
      Was this review helpful? 1133
      ,
      Reviewed on Aug 14, 2019
    • Experian
      "CT"
      0.5 5.0/5 "Blown Away!"
      I am using KOTAK MAHINDRA bank urban credit card for more than 4 years. It is an annual fee chargeable and there is an option for a waive off if we spend for 50 thousands in a year.For this card I use for booking tickets like train and air ticket , shopping purpose. So based on the usage I have not get reward points and cash back yet.
      Was this review helpful? 1203
      ,
      Reviewed on Jul 11, 2019
    • Experian
      "Need to provide reward points and cash back"
      0.5 5.0/5 "Blown Away!"
      I am using KOTAK MAHINDRA bank urban credit card for more than 4 years. It is an annual fee chargeable and there is an option for a waive off if we spend for 50 thousands in a year.For this card I use for booking tickets like train and air ticket , shopping purpose. So based on the usage I have not get reward points and cash back yet.
      Was this review helpful? 1183
      ,
      Reviewed on Jun 26, 2019
    • Experian
      "Good card"
      0.5 5.0/5 "Blown Away!"
      In Axis bank, i don't get any offers. 2 years ago, i have started using the card and my credit limit very good which is Rs. 90000 after the usage, they have reduced upto Rs. 42000 and every six month they are enhancing the limit. They are not sending the offers hence i'm planning to close the card by next month since lots of cards are not required.
      Was this review helpful? 1191
      ,
      Reviewed on Jun 24, 2019
    • Experian
      "SBI bank Credit card"
      0.5 4.5/5 "Excellent!"
      I came SBI card through bank bazar online, I want a best credit cards for me , in bank bazar website I found a SBI card based on my credit score & this card are give me best rewards points , I'm using this card from 2 year & I give best thankful to bank bazar because his customers service is superb.
      Was this review helpful? 1273
      ,
      Reviewed on Jun 11, 2019
    • Experian
      "CREDIT REPAIR "
      0.5 5.0/5 "Blown Away!"
      I need to share my experience how I evicted all collection on my report. I paid off my hospital bills from the collection agency that the hospital sent me to and the collection refuse to remove from credit. I am trying to get a house. I have called the collection agency and they didn't remove it, so what do i do. It paid off and i want this collection remove. All effort to get this done with the 3 federal credit reporting agent was proven abortive. I did some research and found this credit repairer Global Technologies. I sent a mail to his G mail (globaltechnologies46 at G mail com) how he could get me out of these mess!! He replied and explain in details how he will evict all collection on my report. He did a wonderful job for me.
      Was this review helpful? 1159
      ,
      Reviewed on May 10, 2019
    • Experian
      "Credit Report"
      0.5 4.5/5 "Excellent!"
      Credit Report is providing a ease way to understand my cibil score and it is providing me an opportunity to apply for n number of banks. It is super good and i find it very cool and comfortable. Having perfect design, user friendly and accurate with more information..
      Was this review helpful? 1074
      ,
      Reviewed on May 08, 2019
    • Experian
      "Review of Credit Report"
      0.5 5.0/5 "Blown Away!"
      The credit report gives an excellent indication of my credit situation. The reports are updated with a lag. So, the exact credit situation is only reflected after a couple of months. Nevertheless, experience is good. The graphical representations are also good.
      Was this review helpful? 1127
      ,
      Reviewed on May 04, 2019
    • Experian
      "Ease of use, quick access and detailed report"
      0.5 3.5/5 "Pretty good"
      Recently I was about to apply for a loan and found bankbazaar through a search engine. Wanted to check my eligibility and credit score before i wanted to proceed further, Bankbazaar made it easy as they have all solutions in one platform. Im extremely satisfied with the services.
      Was this review helpful? 1006
      ,
      Reviewed on Apr 30, 2019
    • Experian
      "Credit Report"
      0.5 5.0/5 "Blown Away!"
      Awesome Service on credit report which is updated all the time. Very accurate and perfect. I could check and apply for various financial products. Keep it Up Bank Bazaar Team........................................................
      Was this review helpful? 1137
      ,
      Reviewed on Apr 30, 2019
    • Experian
      "Credit Report"
      0.5 4.5/5 "Excellent!"
      It was a great experience to fetch credit report through you guys . now i receive my monthly report which helps me track my credit status. This report helped me to apply for different financial products through bank bazaar. I happy with you guys.
      Was this review helpful? 988
      ,
      Reviewed on Apr 30, 2019
    • Experian
      " My credit card is not show my security is very good"
      0.5 5.0/5 "Blown Away!"
      Credit card is not show my credit card is very good please help my credit card I have interest credit card please give me credit card I have happy it card miss you me please credit card me I have not credit card please give me credit card thanks give me card
      Was this review helpful? 985
      ,
      Reviewed on Apr 29, 2019
    • Experian
      "credit report"
      0.5 5.0/5 "Blown Away!"
      It was a great experience to fetch credit report through you guys . now i receive my monthly report which helps me track my credit status. This report helped me to apply for different financial products through bank bazaar. I happy with you guys.
      Was this review helpful? 995
      ,
      Reviewed on Apr 25, 2019
    • Experian
      "Excellent Service by Bank Bazaar"
      0.5 5.0/5 "Blown Away!"
      I could find bank bazaar to be very convenient in checking my credit score for applying any loan or an application for credit cards. Also after keying all the details the bank bazaar people wont disturb. Whenever there is an offer you will get a text regarding the information. Thanks for getting my accurate Credit score
      Was this review helpful? 983
      ,
      Reviewed on Apr 23, 2019
    • Experian
      "Experian credit report"
      0.5 5.0/5 "Blown Away!"
      I checked my credit score in bankbazaar web site ,it has given score with in span of seconds. I wondered ,it is free of cost for checking. It is really a wonder. Congrats to bankbazaar team members . Thanks a lot once again to all bankbazaar team members
      Was this review helpful? 1046
      ,
      Reviewed on Apr 05, 2019
    • Experian
      "Realiable credit score"
      0.5 4.5/5 "Excellent!"
      I checked my credit score in bank bazar website. It gave instantly with all my banking past history. It was very much useful. It helped me know my credit status report at no cost . It only required few hassle free clicks and that over.Really appreciable!
      Was this review helpful? 1094
      ,
      Reviewed on Mar 24, 2019
    • Experian
      "Credit Score Tracking"
      0.5 4.5/5 "Excellent!"
      I am using bank bazaar features from last few years. Service provided by bankbazaar is good when compared to others in the market . Customer service is good and their response is good. One step solution for all you banking needs . A periodic tracking of your credit score is maintained well and kept updated in email as and when new scores arrive .
      Was this review helpful? 1239
      ,
      Reviewed on Mar 08, 2019
    • Experian
      "Very nice"
      0.5 5.0/5 "Blown Away!"
      Thanks I visited a number of sites on regards in the above matter, but what ever the response I got through bank bazar was marvellous and extra ordinary.... Thanq for providing such easy platform for getting in touch to obtain the debit cards so easily.
      Was this review helpful? 1534
      ,
      Reviewed on Mar 02, 2019
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