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  • What is Considered as a Bad Credit Score?

    Your credit score plays an important role in the financial aspect of your life. It acts as a deciding factor when you are planning to either apply for a loan or get a credit card. Lenders like banks and non-banking finance companies (NBFCs) consider your credit report and credit score, before sanctioning your loan or credit card application. Your credit score helps lenders determine your creditworthiness and measure your ability to repay the borrowed sum.

    What is a Bad Credit Score?

    A credit score is a measure of your creditworthiness which is presented in a numerical format. It ranges between 300-900, 300 being the lowest and 900 being the highest. You should always work towards maintaining a credit score closer to 900. Majority of banks and NBFCs consider a credit score of 750 and above as ideal. Let’s take a look at different credit score range:

    Bad 300-500
    Average 550-650
    Good 650-750
    Excellent 750-900

    A credit score in the range of 300-550 is considered as bad. If you have a credit score that falls in this range, you will need to take serious measures to improve it. Having a bad credit score will not make you eligible to avail a loan or get a credit card.

    What are the Factors that Affect your Credit Score?

    There are several factors that can hamper your credit score and decrease your chances of getting a loan or credit card. Let’s take a look at some of the main factors that can bring your credit score down:

    • Not checking your credit score
    • You should check your credit score from time-to-time, as it can go down drastically owing to some errors in your credit report.

    • Delaying payment of bills
    • Not paying your bills or EMIs on time is the biggest factor that can have a negative effect on your credit score in a massive way. You should avoid delays while paying your EMIs as well as credit card bills every month. You should maintain discipline and pay all the bills on priority as it will have a huge impact on your credit score. At the same time, you should try and pay all your bills in full amount and avoid paying minimum balance due. If you don’t pay your bills in full, you end up paying a lot of money in interest.

    • Maintaining high credit utilisation ratio
    • You should try and maintain a low credit utilisation ratio. This ideally means you should use only 15-30% of your credit card limit. Using your credit card limit to the maximum suggests that you are credit hungry and are not able to handle your finances. Exceeding your credit card limit and having a high credit utilisation ratio can negatively affect your credit score.

    • Closing old credit cards
    • Having a long credit history works wonders for your credit score. If you close your old credit cards, you lose out on years of good credit history and repayment behaviour. Hence, it is advisable to keep your credit cards active for as long as it is possible provided you are not losing money paying the annual fee.

    • Applying for multiple credit cards
    • Applying for multiple credit cards at a time can make you look as credit hungry. Therefore, it is advised to space out your credit card and loan application throughout the year instead of applying at the same time. A number of credit applications can trigger hard inquiries that can have a negative effect on your credit score.

    • Not reviewing your credit report
    • A credit report is a summary of all your personal information, credit transactions, current as well as past credit accounts, and repayments. Errors in your credit report can bring your credit score down. Therefore, it is better to check your credit report periodically. Since 2017, the Reserve Bank of India (RBI) has made it mandatory for all the credit bureaus in the country to offer one free credit report to consumers in one financial year. At the same time, you can also visit BankBazaar.com and check your free credit score.

    • Having multiple unsecured loans
    • It is important to maintain a good balance of both secured and unsecured loans. Having multiple credit cards and no loans will not help to improve your credit score intact. Therefore, it is better to have a good mix of different types of credit.

    What are the Disadvantages of Having a Bad Credit Score?

    As mentioned earlier, your credit score is an important factor that is taken into consideration while availing loans or credit cards. Having a bad credit score does not make you eligible to get a loan or a credit card. Majority of the lenders will not be keen on sanctioning you any type of credit, as a bad credit score suggests you don’t have the ability to repay the borrowed amount.

    Measures to Improve your Credit Score

    There are several measures that will help you improve your credit score:

    • Get your credit report from Bankbazaar.com.
    • Review and analyse your credit report. Make necessary changes and improvements.
    • Fix your late payments by paying your dues on a timely basis moving forward.
    • Pay off debts (if any) instead of transferring it to other accounts.
    • A good way to build a credit history is to get a secured credit card.
    • Increase the credit limit on your existing credit card.
    • Have a good mix of secured and unsecured loans.
    • Maintain a low credit utilisation ratio.

    FAQs

    1. What is considered as a good credit score?
    2. Majority of lenders like banks and non-banking finance companies consider a credit score of 750 and above as ideal.

    3. How can I improve my credit score immediately?
    4. Here are some of the ways in which you can improve credit score immediately:

      • Increase the credit limit on your existing credit card
      • Maintain a low credit utilisation ratio
      • Pay off all the pending debts
      • Fix errors (if any) in your Credit Report
      • Limit credit card applications
      • Don’t remove old credit accounts
    5. What is the benefit of having a high credit score?
    6. A number of lenders offer preferential pricing to consumers who have a high credit score. With a high credit score you not only become eligible to receive a loan but also get discounts on interest rates, processing fees, and so on.

    Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

    Credit Report Reviews

    • Experian Credit Report
      "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? 29
      ,
      Reviewed on Aug 21, 2019
    • Experian
      Experian Credit Report
      "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? 30
      ,
      Reviewed on Aug 14, 2019
    • Experian Credit Report
      "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? 69
      ,
      Reviewed on Jul 11, 2019
    • Experian Credit Report
      "Test Review For CT"
      0.5 4.5/5 "Excellent!"
      OEJHPNETVIWEVVHZFYBHEFWQZAUGPYNLVKXOHPEMZTXMAFHKVUFHMPSEKUFQRIWHKEUVYPFMHCKHQGOSJXJXQPVGYOJRCCKRRSNWLGVLRJBSRLIJLJVZTOWCGGFLBBXJWDUDWATLCKBNABXLPGDZGSTTIXIUVWUTPZQBMWFMPUQPQRGZQGLBDJHYEGQHACNJEJKHQNRGQBGEKYPQQC
      Was this review helpful? 79
      ,
      Reviewed on Jul 04, 2019
    • Experian Credit Report
      "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? 91
      ,
      Reviewed on Jun 26, 2019
    • Experian Credit Report
      "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? 83
      ,
      Reviewed on Jun 24, 2019
    • Experian Credit Report
      "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? 102
      ,
      Reviewed on Jun 11, 2019
    • Experian Credit Report
      "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? 108
      ,
      Reviewed on May 10, 2019
    • Experian Credit Report
      "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? 138
      ,
      Reviewed on May 08, 2019
    • Experian Credit Report
      "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? 134
      ,
      Reviewed on May 04, 2019
    • Experian Credit Report
      "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? 140
      ,
      Reviewed on Apr 30, 2019
    • Experian Credit Report
      "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? 128
      ,
      Reviewed on Apr 30, 2019
    • Experian Credit Report
      "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? 120
      ,
      Reviewed on Apr 30, 2019
    • Experian Credit Report
      " 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? 118
      ,
      Reviewed on Apr 29, 2019
    • Experian Credit Report
      "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? 128
      ,
      Reviewed on Apr 25, 2019
    • Experian Credit Report
      "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? 127
      ,
      Reviewed on Apr 23, 2019
    • Experian Credit Report
      "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? 152
      ,
      Reviewed on Apr 05, 2019
    • Experian Credit Report
      "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? 159
      ,
      Reviewed on Mar 24, 2019
    • Experian Credit Report
      "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? 171
      ,
      Reviewed on Mar 08, 2019
    • Experian Credit Report
      "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? 162
      ,
      Reviewed on Mar 02, 2019
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