Top 5 FAQs About Credit Score | BankBazaar

Top 5 FAQs About Credit Score | BankBazaar


Got queries regarding Credit Score? No worries! We’ve identified and answered the top five commonly asked questions about Credit Score. Hope this helps!

Top 5 FAQs About Credit Score

We all are today aware that maintaining a good Credit Score can help us, as customers, get cheaper interest rates on loans and great offers on Credit Cards. Banks and Non-Banking Financial Companies (NBFCs) across the country use the Credit Score of applicants to gauge their credit worthiness. Hence, it is crucial for us, as potential borrowers of credit, to maintain a good score.

And, since it is important for us to maintain a good Credit Score, it is necessary that we keep an eye on our score for better evaluation. Got three minutes? Click to get your Experian Credit Score for FREE.

Still got some queries regarding Credit Score? No worries! We’ve identified and answered the top five commonly asked questions about Credit Score. Hope this helps!

Will I get a loan quicker and at a low interest rate if I have a good Credit Score?

Although lenders look at your Credit Score before considering your loan or Credit Card application, they also look at a number of other factors too, such as your income, employment history and so on. But you can be rest assured that if your Credit Score is good, the chances of loan refusal is low and you’ll get better rates than someone with just an average score.

Additional Reading: Credit Score – Facts, Myths & A Case Study

What will be my Credit Score be if I have never borrowed credit till date?

If you do not own a Credit Card or have never taken a loan till date, then you will not have any credit history to show. And, of course, your Credit Score will be low. Lenders are usually quite apprehensive about lending to credit newbies as there is no way for them to gauge their credit behavior. While we are not encouraging you to borrow unnecessarily, it wouldn’t hurt to get yourself a Credit Card. Having a credit history is extremely helpful for your future.

Wrong info or report on credit report! How do I address it and get it corrected?

Don’t fret. It is pretty simple. Once you’ve identified the error in your credit report, get in touch with the lender who has updated the wrong info, request them to correct the same and send the rectified info to the credit bureau. It should ideally be corrected by the credit bureau within three days after receiving notification from the lender. Do keep in mind that credit bureaus do not make any changes on their own accord, so you’ll have to get in touch with the respective lender to make changes.

Can I improve my Credit Score?

Yes. While you’ll not see a sudden improvement in your Credit Score, it will gradually increase if you stick to paying your dues on time and stay away from borrowing too often. Do not forget that just applying for a loan or Credit Card, irrespective of whether you get the financial product or not, is taken as a hard enquiry and reflects on your score. So, apply for a credit product only when it is necessary and steer clear from multiple applications in a short span of time.

How often should I check from credit report?

Checking your Credit Score or pulling your credit report does NOT impact your score. So, you are free to do it as many times as you want. However, as a practice, we’d suggest that you check your score at least twice a year without fail. Also, it is always good to check your score before you apply for a credit product, so you can be sure of your chances of approval.

Additional Reading: 5 Shocking Ways Your Credit Score Can Affect Your Life

Now that we have, hopefully, cleared most of your doubts about Credit Score, maybe it’s time you quickly check your Credit Score.

First published on 19th November, 2019.

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