Credit Score - Get Credit Score India

You must have heard the term ‘Credit Score’ or ‘CIBIL Score’ mentioned often. These words have become a part of common parlance. However, it is important to understand what these terms are. Especially when you are considering seeking financial aid from a bank in the form of a loan, your Credit Score can impact the entire application and approval process.

What is a Credit Score?

A Credit Score is essentially your creditworthiness represented in a numerical format. This score shows banks or any financial institutions your ability to repay the borrowed amount. Generally, CIBIL Score is a three-digit score ranging from 300 to 900.

Often ‘Credit Score’ and ‘CIBIL Score’ are used interchangeably. However, CIBIL or TransUnion CIBIL Limited, is one of the most trusted credit information companies in the country. This company collects the credit history and information of millions of people. It is because of its stellar reputation that the CIBIL Score is often referred to as Credit Score in India. 

Why is your Credit Score important?

Your Credit Score helps a lender decide if you are a good candidate for them to lend money to, in the forms of loans, credit cards, etc. 

When you seek a Personal Loan, meet urgent medical expenses, plan a family event, or support your loved ones, your Credit Score will play a pivotal role. If your Credit Score is low, your loan application might not be approved. Thus, it is vital that you check your Credit Score before making an application. At HDFC Bank, you can get a Personal Loan that offers several benefits, along with an affordable interest rate. Plus, you can repay the loan with easy EMIs through several modes. In this way, your Credit Score can remain healthy after repayment of the loan. 

What are some factors that affect your Credit Score?

There are various factors that determine your Credit Score, crucial of which is your payment history. Other factors which can affect your Credit Score are:

• Irresponsible payment history, such as paying loan EMIs and delaying Credit Card bills payments, can lower your Credit Score.
• If you use your credit limit excessively – more than 30% - it can affect your score negatively.
• If you have outstanding debt and pay the minimum amount due on your Credit Card, your Credit Score will be lowered.
• Lastly, the length of your credit history also factors into how your Credit Score is perceived. 
  
  

How to Improve Your Credit Score?

Here are some ways to maintain a healthy Credit Score:
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• Set reminders to pay off loan EMIs or Credit Card dues on time.
• Lengthen your credit history by holding on to older Credit Cards.
• Ensure that you control your credit usage to maintain a healthy utilisation ratio.
• Do not take on too much debt at once and pay off one loan before taking another.
• Build a Credit Score by choosing a mixed bag of secured and unsecured loans.
  
  

Once you strengthen your Credit Score, you can apply for several types of loans, such as Car Loans and Home Loans, various kinds of insurance, and Credit Cards. As you pay off these loan EMIs and other dues, your score can improve. Then you can apply for loans that offer higher amounts, like a Personal Loan. 

Apply for the HDFC Bank Personal Loan to meet any financial challenge! 

Check your Credit Score with HDFC Bank by clicking right here. 

*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.

*Terms and conditions apply. Personal Loan at the sole discretion of HDFC Bank Limited. Loan disbursal is subject to documentation and verification as per Banks requirement.