A loan can offer timely access to essential funds, whether for emergencies or major expenses such as home renovation and vehicle purchase. It can be a helpful financial tool to meet your funding needs. However, before approving a loan, lenders evaluate your credibility as a borrower.
One of the most crucial indicators they assess is your credit score — a three-digit number ranging from 300 to 900 that reflects your repayment ability. The higher the score, the more trustworthy a lending institution assesses the borrower and vice versa.
A score of 700 or above is generally considered ideal when applying for a loan. A strong credit score not only improves your chances of loan approval but can also help you secure more favourable interest rates and terms.
This makes it important to regularly check and take steps to improve your credit score.
Here's how you can check your credit score easily.
Steps to Check Your Credit Score
Visit a Credit Bureau Website
Go to the official site of any major credit bureau — CIBIL, CRIF High Mark, Experian, or Equifax.Create an Account
Register by providing details like your name, address, PAN, and email ID.Verify Your Identity
Upload the required documents and ensure all information is accurate.Answer Verification Questions
Respond to questions related to past loans or credit cards to confirm your identity.View and Download Your Credit Report
After verification, your credit score will appear on the dashboard. Download the credit report for reference.
To build a good credit score, always pay your EMIs and credit card dues on time, and regularly review your credit report for errors. Keep your credit utilisation below 30% and maintain a balanced mix of secured and unsecured loans. Avoid frequent loan applications, as too many inquiries can hurt your score.
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