A lending institution is not satisfied merely by your income, repayment potential or the job stability. It goes beyond these to check whether you are a sound debtor or not. The soundness is judged by how good you have been servicing the debt. Just as you need to do something out of the box to get job promotions, similarly a track record of smooth repayment would hold you in good stead by the time you apply for a fresh debt.
Yes, the approval comes easily with a good credit score. But many just apply without checking the score. And, if the score, when checked by the lender, turns out poor, the application rejection remains a mere formality. But when you can check credit score online and that too for free, why don’t you then do so to prevent the incidence of rejection?
How to Check Credit Score Free?
You can check credit score free once a year on the website of credit bureaus such as CIBIL having a long list of credit data. Subsequent checks would require a payment of ₹500 and above. To check the score, you first need to create a login choosing a user ID and password. But, before that, you must share your personal and credit details with CIBIL. Enter the details accurately before being allowed to create a login.
However, you can check the score free, irrespective of the number of instances, here.
How Much of a Credit Score Should You Have for a Personal Loan?
A personal loan, as you would know, is an unsecured debt that you can avail for as long as 5 years. The credit score must be 750 and above for a hassle-free approval to the application. A higher credit score is needed for a personal loan as it is not backed by security or collaterals.
How Much Do You Need for Credit Cards?
Like a personal loan, even a credit card approval needs a score in the range of 750 and beyond. It’s an unsecured debt without any requirement on the part of a cardholder to submit a collateral.
What is the Minimum Credit Score Sought for a Home Loan?
The minimum credit score needed to obtain an approval for home loans is 650 and above. As this comes under the category of secured debt, a lower score than what’s required in personal loans and credit cards can be accepted.
Credit History as Important as Credit Score
Don’t be too impressed by a good credit score alone. If your credit history has dark spots, lenders might review their decision to lend you. If there are spots, it clearly means you have messed up your repayment in some way or the other.
On finding that weak pattern for long in your credit report, there could be a delay in approval. And, even if the approval comes, be ready to service the fresh debt at a higher interest rate, pinching your wallet hard and leaving nothing reasonable or substantial to spend on other needs of life.
So, the article has helped you know the ways to check your credit score free while knowing the credit number you need for loan approvals besides the importance of credit history.