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Credit Score

Credit Score Check

Last Updated 31st Oct 2020

  • A credit score is a quantified assessment which determines the creditworthiness of an individual.
  • You can visit MyLoanCare for a free Credit score check online.
  • Credit score lies in the range of 300-900. High credit score means higher chances of getting a loan and negotiating the terms and conditions of loans.
  • Credit history, credit mix, credit utilization ratio are some of the essential factors which impact credit report.
  • Customers can improve their credit score by paying their dues on time and maintaining a low credit utilization ratio.
  • Credit rating agencies like Credit Information Bureau (India) Limited , Experian,Equifax and Crif High Score computes the credit score.
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What is Credit Score?

A credit score is a three-digit number in the range of 300 to 900, which determines the creditworthiness of an individual. It is a quantified assessment of the creditworthiness based on the financial records of the individual. It signifies the credit standing based on the repayment record of credit cards, loans etc. taken from banks and non-banking institutions. A credit score helps in gauging the repayment capacity of an individual. It plays a vital role in a lender's decision to offer credit.

Steps to Get Your Free Credit Score

Individuals can check their credit score on MyLoanCare website in a matter of minutes. The steps for the same are as follows:

Step 1: Click on 'Free credit score'.

Step 2: Enter the relevant information which includes personal and employment details along with PAN number.

Step 3: You will receive an OTP on your registered mobile number.

Step 4: Provide the OTP, and you will get your FREE Credit Report.

Step 5: Credit report check will show:

  • Credit score
  • Credit analysis from MyLoanCare.in
  • Detailed Credit Report including information on your past loans and cards
  • Loan offers based on your profile and credit history

Credit Score Range and What It Means

Credit Score represents the repayment capacity of an individual. It lies from 300 to 900, higher the credit score, better the chances of getting loans. Further, a higher credit score helps an individual to negotiate the terms and condition of the loans. The range of the bank credit score is as follow:

  • Under 550 If the credit score is under this category, then it shows that the individual has defaulted in making multiple payments. Individuals under this category have very low or no chances of obtaining new credit.
  • 550 - 649If the credit score hovers under this category, then it will be called an average or fair credit score. Individuals will still be required to improve their credit score.
  • 650-749 The credit score under this category is known as a good credit score, and an individual will be able to obtain credit. However, he will not be able to negotiate the terms and conditions of the loans.
  • 750 - 900 A credit score in the range of 750 and 900 indicates a borrower is financially responsible when it comes to credit. Most of his payments, including loans, credit cards, utilities, and rental fees, are made on time. Banks will be willing to provide loans to customers under this category at cheaper rates, and the customer will also have the leverage to negotiate the terms and conditions of the loan.

Who Computes Credit Score?

Credit bureau like TransUnion CIBIL, Experian, CRIF High Mark and Equifax consolidate the past credit history and repayment behaviour of the individuals and provide a comprehensive credit bureau score to lenders.

What impacts your Credit Score?

There are multiple factors which impact the credit score. Some of the prominent ones are:

  • Repayment history: Repayment history is one of the most important components of the credit score. Credit bureau keeps track of all the payments made towards bills and loans; if an individual is paying the bills at the time, then it suggests the individual is a responsible borrower and impacts the credit score positively. A single default in EMI payments leads to a drop of around 100 points.
  • Credit utilization: Credit utilization is ascertained by dividing the total credit by the individual divided by the absolute limits of the credit cards. The Below 30% credit utilization is considered better for most customers, and the lower, the better for your score.
  • Credit history age: Credit length includes the age of the oldest credit, age of the recent credit and the average age of all the credits. Usually, the longer the credit history, the better it is.
  • Credit mix: A mix of different types of credit, such as credit cards, store accounts, instalment loans, mortgages, car loans, or home loans also impacts the credit score. Different types of credit show the individual has an experience of many types of credit. Further, how many total accounts individuals have is also considered.
  • Credit inquiries: Banks and financial institutes review a customer's credit reports when he/she applies for a new line of credit. A record of this, known as an inquiry which can stay on the credit reports for up to two years. Soft inquiries, like those that come from checking the own scores and some loan or credit card pre-qualification, don't hurt your scores. Hard inquiries, when a bank or creditor checks the credit before making a lending decision, can hurt the scores even if you don't get approved for the credit card or loan. But often a single hard inquiry will have a little impact and the scores could recover, or even rise, within a few months.

List of Credit Information Companies in India:

The four main Credit Information Companies in India are:

  • Credit Information Bureau (India) Limited
  • Equifax Credit Information Services Private Limited
  • Experian Credit Information Company of India Private Limited
  • CRIF High Mark Credit Information Services Private Limited

FAQs

Why Should I check my Credit Score?

There are multiple reasons to check the credit score:

  • Become an authorized user on another persons credit card
  • Apply for a credit card
  • Avoid applying for multiple credit cards at once
  • Check the credit utilization ratio
  • Pay EMIs on time

Can credit score inquiries affect the score?

Credit score inquiries can affect your credit score depending on the inquiry you have made. There are two types of inquiries

Why is a PAN card required for checking the credit score?

PAN is linked with all financial and bank accounts. PAN makes it easier to track financial details efficiently.

Is there a limit to requests for accessing credit score?

There is no such limit to request for accessing the credit score. However, individuals must limit the enquiries as it impacts the credits score negatively. (Not sure of the answer, nothing is available on the internet about this)

How do credit scores change?

There are various ways in which credit score change some of them are:

Positive change:

  • Paying bills on time
  • Reducing the credit
  • Making an outstanding payment
  • Limiting new credit request

Negative change:

  • Defaulting in payments
  • The high credit utilization ratio
  • Applying for a lot of credit in a very short period

What are the factors that are included in the calculation of my credit score?

The factors which are included in the calculation of the credit scores are as follow:

Will the credit score be affected by owning multiple credit cards?

Having multiple credit cards would not necessarily lower an individuals credit score, and even it can sometimes help individuals to build the credit score. However, if individuals have more cards than they can handle or use them irresponsibly, the credit score could drop considerably.

Can the (Credit Information Companies) change or delete my credit information?

The information on the credit score might be missing or inaccurate. In all those cases, Credit information Companies can change and delete the credit information provided individuals provide relevant details to back his claim.

Can I have more than one Credit Report?

There are multiple agencies for gauging the credit score of an individual. So, yes, individuals can have more than one credit report.

How can I build my credit score with no credit history?

Ways to build a credit score with no credit history are:

How to check my credit score online for free?

Individuals can get credit scores on MyLoanCare. Individuals are required to enter the personal and occupational details along with a PAN card to get the full credit report.


Our News - Oct 2020
  • 2019-07-08 : Bank of Baroda and CRISIL signs MoU to assess the credit quality of SMEs
    To assess the credit quality customers in the small and medium enterprises (SME) segment, Bank of Baroda and CRISIL have signed a memorandum of understanding (MoU). CRISIL will assess the SMEs by analyzing the data streams through its digital platform its proprietary platform for data and analytics. This facility will be available for both existing and prospective customers from the SME segment, the lender said.
  • 2019-05-27 : Allahabad Bank offers a concession on home loan interest rate to those having a good credit score
    Private sector lender, Allahabad Bank is offering a concession of 10 basis points to its home loan borrowers. The discount is available to only those borrowers who are having a credit score of above 750 from CIBIL and CRIF Highmark. Currently, the lender is offering 8.85% on home loans up to Rs. 25 lakh and 9.10% above Rs. 3 crores.
  • 2019-04-18 : Womens are taking lead in buying homes, shows TransUnion CIBIL report
    As per the 2019 TransUnion CIBIL report, shows that more number of womens are buying home as compared to male members. The rise in the number of buying more houses by womens is due to availability of preferential home loan schemes and convenience of co-borrowing. However, there has also been a rise in the number of successful credit applications by women borrowers which has marked a 48% growth between 2015 and 2018 as compared to 35% growth by male borrowers.
  • 2019-04-09 : Unsecured loans are growing at a faster pace, beats overall credit, says TransUnion CIBIL
    According to the latest borrower data analysed by the TransUnion CIBIL, growth in the unsecured loans like personal loans and credit cards grew 31.3% year-on-year basis as on December 2018 which is more than double the growth recorded by the overall bank credit. However, the secured loan category like a gold loan, home loan, auto loan, and mortgage loan has witnessed moderate growth. The reason for the sharp growth in the unsecured segment is due to the improved ability of lenders to extend loans to the borrowers.
  • 2019-03-18 : RBI to hold pre-policy meet with trade bodies, rating agencies on Mar 26
    Reserve Bank of India (RBI) is planning to hold discussions on March 26 with representatives of trade bodies and credit rating agencies on interest rate and steps to boost economic activities, according to the sources. The meeting will address all the issues going on in the banking sector including the transmission of rate cut benefits to the loan borrowers.
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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