Your Credit Score-Ways To Procure And Improve

What Your Credit Score Measures:

Your credit score, also known as your CIBIL TransUnion score, is a large determinant of the types of credit you have access to, and at what rates.

Your score looks at your overall credit profile, including credit cards, mortgages, car loans, and education loans, to see how much credit you have access to and how you are using it. There are five components that determine your score.

Components of Your Score:

• Payment history- Do you pay all of your bills, and pay them on time?
• Amounts outstanding – How much you owe, the number of accounts with balances, and how much of your available credit you are using
• Length of your credit history – The time since accounts were opened and since they were last used
• New credit – The proportion of accounts that were recently opened and the number and recency of new credit inquiries.
• Types of Credit – Do you have a healthy mix of credit types, such as credit cards, a car loan, and a mortgage?

What's Not Included:

Your credit score does not factor in your employment status, income, age, gender, or other non-credit-related information. Measures such as debt to income are not included.

What Is a Good Score:

• If the score given to you by credit bureau is in between 751-900, it is considered to be very high and your rating is excellent.
• Anything between 700-750 is high and the rating is good.
• If it is less than 700 and 500 it is considered to be average in case of 700 and very low for 500 and below. Similarly the CIBIL ratings go on like fair and poor if the score is less than 500.

When to Check Your Score:

Check your credit report at least once each year. This will not only help show you where you stand, but will also help you identify unauthorized accounts. Quickly dispute inaccurate information or accounts that are not yours.Go back to the bank or the financial institutions which has reported this adverse data and find out what has to be done.

Where to Check Your Score:

You can now purchase your CIBIL TransUnion Score directly from CIBIL by speed/registered post or online.

• You have to pay 450/- through draft and mail the form and draft at the address mentioned in: https://www.cibil.com/d2c/
• You can also make an online payment, complete the form, take a printout and send to the address mentioned in: https://www.cibil.com/d2c/

How to Raise Your Score:

• Keep your total debt under control. If your total borrowings are significantly high, use some of your savings to repay some of your debt.
• Re-establish on-time payments. The longer your history of on-time payments and the further you get from missed payments, the better your score will be.
• Keep your overdue accounts low as a proportion of your total number of accounts.
• When you are seeking for a new loan or credit card, do it in a relatively short amount of time. You don’t want to have your report show that you are constantly looking for credit!
• Investigate your options in order to reduce your interest and other credit related costs, e.g., refinance an outstanding loan at fixed interest rates if there is a significant drop in interest rates or you discover a significantly cheaper option, etc. This will make your debt burden easier to manage.

What happens if your score is 0 or -1:

If your score is 0 or -1 it is not a negative thing at all. It means:

• You have no credit exposure
• You do not have enough credit history to be scored
• You have no credit activity in last few years