Credit Score measures an individual’s payback ability in respect to the amount borrowed in numerical terms. The score limit ranges from 300-900. Factors such as your credit history, repayment records, overdrafts, and others contribute to deciding where your score falls within the standard range. A good credit score generates trust among the lender and borrower, thus while applying for loans from any financial institution your credit score can be very beneficial in granting you perks and loan facilitation process Sharat Chandra onion Credit.
Sharat Chandra onion Credit provides many additional benefits on the loans provided depending on the credit score of the individual.
Credit Bureaus take into consideration various factors related to an individual’s financial dealings and give the credit scores based on that. Let’s dive into the four credit bureaus and their process.
The Four Credit Bureaus
A credit bureau is an agency that is responsible to collect and analyze an individual’s financial information and assign them a score. The four credit bureaus of India are:
CIBIL
CIBIL was established in 2000, gained the license to operate in 2010. This comprehensive bureau undertakes the analysis for individuals as well as organizations. It assigns a credit score rating that ranges between 300 to 850 – where 720 and above is an excellent score. There is an additional feature, they assign PERFORM scores to organizations and other entities
Equifax
Equifax goes back to the year 1899 and became a licensed credit rating agency in 2010. Its credit score ranges between 1 to 999. In addition to credit scores, Equifax also provides risk scores and portfolio scores for individuals. They offer various other services for companies such as reports on credit fraud, risk management, industry diagnosis, and portfolio management.
Experian
Experian was established in 2006, received its license as a credit rating agency in 2010 in India. It analyzes credit reports on both individuals and companies. They take 20 days to create a report and charge a decent price. The credit scores rating range from 300 to 900.
CRIF High Mark
CRIF High Mark too obtained its license in 2010. CRIF has been the only agency to be approved in India by the Reserve Bank of India itself. They conduct credit rating analyses for both individuals and corporates. Their credit scoring range lies between 300-850
How are Individuals Scored For credit Score?
Financial institutions such as banks provide these credit bureaus the relevant information from your monetary behavioral pattern. These credit-rating agencies collect the information and analyze it. Here are the main variables that serve as the basis for credit scoring along with their respective compositions:
- Payment history accounts for 35 %
- The total amount owed accounts for 30%
- Length of credit history accounts for 15%
- Types of credit, this accounts for 10%
- New credit, accounts for 10%
What can you do to improve your credit score
- Ensure timely bill repayments.
- Raise your credit limit – Accounts falling in good standing are granted an increase, keep inquiring about the same, and maintain a lower credit utilization rate.
- Don’t close your credit card account if not in use. Closing the account can negatively affect your credit score, it’s better to stop using it.
- Credit repair companies can help you in improving your credit score
Conclusion
A good credit score can result in major money-saving. An excellent score that lies between 700-900 can avail you of lower interest rates. Sharat Chandra onion Credit provides small loans and lending facilities, at lower interest rates on excellent credit scores. As a borrower, the responsibility falls on your shoulders to maintain a strong credit score and enjoy the benefits of it. A strong credit score generates trust and pushes financial institutions to increase their credit limit and impose lower interest rates.
