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Apply NowA credit score is a three-digit number used by lenders to evaluate your financial responsibility. It’s calculated based on your borrowing and repayment history. Credit bureaus like Experian analyse factors like how timely you pay your bills, how much credit you’re using, and the length of your credit history to generate your score. This score can influence loan approval, interest rates, and even the types of credit you qualify for.
| Score Range | Rating | Implication |
|---|---|---|
| 300 - 579 | Poor | Difficult to secure loans; expect high interest rates. |
| 580 - 669 | Fair | Loans are possible, but likely at higher interest rates. |
| 670 - 739 | Good | Eligible for favourable loan terms and interest rates. |
| 740 - 799 | Very Good | Low risk for lenders, better loan offers available. |
| 800 - 900 | Excellent | Access to the best loans and credit terms. |
Checking your credit score through Airtel Finance is easy, free, and doesn’t affect your credit. Here’s how you can do it:
It’s a simple process that gives you quick access to important financial information without any hassle.
Several factors contribute to how your credit score is calculated, and understanding them can help you improve and maintain a good score:
| Payment History | Paying bills on time positively impacts your score. Late payments or defaults can damage it significantly. |
|---|---|
| Credit Utilisation | The ratio of how much credit you’re using versus your total credit limit. Keeping this below 30% is ideal. |
| Length of Credit History | The longer your history of managing credit, the better. |
| Types of Credit | Having a mix of credit, such as credit cards, home loans, and personal loans, can improve your score. |
| Recent Credit Inquiries | Applying for multiple loans in a short time can lower your score temporarily due to hard inquiries by lenders. |
Improving your credit score takes time and consistency, but following these steps can help:
| Pay off outstanding debts: | Prioritise high-interest debts and always make payments on time. |
|---|---|
| Limit credit applications | Only apply for new credit when necessary to avoid frequent hard inquiries. |
| Dispute inaccuracies | If you find any mistakes on your credit report, raise disputes to get them corrected. |
| Keep balances low | Try to use less than 30% of your available credit to boost your utilisation score. |
Experian provides detailed credit reports and scores ranging from 300 to 900. Your score reflects your creditworthiness, helping lenders assess risk. Regularly checking your score ensures you stay on top of your financial health.
