Borrow - Loan Company Website Template

Planning to borrow money anytime soon or down the road?

Aug 16, 2019

You will need to know what a credit score is. In short it offers a snapshot of your personal debt repayment history at single point in time. Letting potential lenders know what types of risk they would be taking by loaning you money. Since there have three credit bureaus Experian, Equifax, and CIBIL you have three potentially different credit scores. The numerical value of the scores also known as FICO. Scores ranges from 300 to 850. In general the higher the score the lower the risk. A lower score doesn’t necessarily mean you can’t get a loan but you probably will have to pay higher interest rate or be approved for a lesser amount than someone with the high score.

So what factors can effect your credit score, you may be surprised:

  • Payment History
  • Length of credit history
  • New account that have been opened
  • Number of recent credit checks
  • How many accounts open

Yes! This does include all of those departments to our credit card offering deals seemingly too good to pass up.

Bottom line any recent activity that your credit file will affect your score.

So what’s a responsible consumer to do - Paying your bills on time and not overextending are the best places to start, so when you do need that big loan your credit score will help you instead of standing in your way.