What is Credit Score? | How Credit Score determines your loan and credit card | How Credit Score determines your loan | loan and credit card | Credit Score

What is Credit Score? How Credit Score determines your loan and credit card

What is Credit Score?

Whenever we apply to the bank for a loan or credit card, our application is almost rejected because we do not have a good credit score.

Then I think again and again what is this credit score? How much more can I get a Loan or Credit Card if I have a Credit Score? Here you will find the answers to all these questions and everything about Credit Score.

First of all you need to know what is Credit Score and how much Credit Score you will get Loan or Credit Card according to your needs. After that you will be told how to check Credit Score on Free.

What is Credit Score?

Your credit score is calculated by looking at any loan or credit card money transaction taken from the bank.

Credit Score is the average number that comes out of whether you are depositing your loan regularly, whether you are paying EMI properly, whether you are making late payments. The better the credit score, the better the chances of a credit card or loan.

Why is Credit Score needed here?

Because when a bank gives a credit card or loan to someone, he checks the person who is being given the transaction with the bank and the risk of losing the bank's money,

That is why the credit score is checked. The better the credit score, the lower the risk and the bank can rely on it.

So how much credit score is better?

Basically Credit Score is measured in numbers from 300 to 900 of which 900 is later in the Great Credit Score category. A person's credit score is verified in 5 parts -

1. Not Applicable: 

It takes any kind of credit or payment history accordingly. If you have not taken any loan or credit from the bank then there will be no credit score.For Credit Score, you have to take some kind of credit from the bank (Example: Usually online shopping website Debit Card - Items are sold in EMI with ATM. If you buy some EMI from there, Credit Score will start). 

2. 300 - 549: 

This Credit Score is kept in the lowest category where the person cannot pay the EMI or Credit Card bill on time or pay too late.

It is better not to think that it is very difficult to get a loan or credit card for these credit scorers. Banks view these credit scores as very high-risk.

3. 550 - 649:

This Credit Score is considered to be in the right category, where the person is harassed for paying EMI on time and sometimes the payment is late, this Credit Score is very unlikely to get a Credit Card or Loan.

Banks view these credit scores as high-risk.

So how much credit score is better?

4. 650 - 749:

Yes this Credit Score means that you are in the right place and it is placed in the category of good Credit Score.

Here you are eligible to get a credit card or loan but here the bank keeps you within a limit, which means you can't talk about this kind of loan or interest less. Banks view these credit scores as low-risk.

5. 750 - 900:

This Credit Score is placed in a great category where you have the strength to bargain with the bank for a loan or interest related item.

Here the bank will offer you various Loan or Credit Card without your application which will be Approved from the beginning.

How to do good credit score?

According to the bank, the key to maintaining a good credit score is to pay the EMI of the loan from time to time and pay the credit card bill before the deadline.

You need to borrow as much as you can afford to pay off the EMI from time to time and the credit score will be great. Use of Credit Card should be done only when it is very important. Most of the time it has been seen that the Credit Score for Credit Card has become very low.

How to check Credit Score on Free?

The question here is how do we check our Credit Score? You can check your credit score online for free.

Below are some Free Credit Score Checking websites where you can easily check Credit Score with your name, mobile number.

You can find out the Credit Score in 2-5 minutes through this website. After verifying the credit score, you should apply for a loan or credit card when the credit score is good.