How Does Creditfit Help In Improving Credit Scores

CreditFit is a product launched by CreditMantri. It comes with multiple benefits and features. It primarily helps build your credit score seamlessly and get the best loans and credit cards with ease. On subscribing to CreditFit, you will get expert guidance from our credit coach for a year. Let us read on to learn about the importance of credit scores and more about CreditFit.  

What Is A Credit Score? 

A credit score is a 3 digit number between 300 and 900 summarizing your repayment history. It represents your creditworthiness and your capacity to repay the loan. Most lenders look at your credit score before sanctioning loans. And this is true especially for unsecured loans such as personal loans which do not require any collateral or security. For these types of loans, lenders look for high credit scores to minimize risk. A high credit score represents a good repayment history and your chances of getting your loan application approved are more. Whereas, the lower your credit score, the lower your chances of getting a loan approval. Even if you get loans with a bad credit score, you may not be able to get preferential loan amounts or interest rates. 

 

Credit Score Range and Interpretation 

How Is The Credit Score Calculated - Factors That Impact The Credit Score

The factors given below are used to calculate the credit score and thus have a major impact on it. 

 

• Payment history: 35% of your credit score is computed on the basis of your payment history. The number of timely payments, the number of missed payments, and how many days past due you have paid your bills constitute your payment history. So, if you have a higher proportion of timely payments, then your credit score will be higher. Payment defaults will drastically pull down your credit score. 

 

• How Much You Owe: About 30% of your credit score depends on how much balance you have on loans and credit cards. If you have a high balance, then you have exhausted a high amount of your credit limit. This will impact your credit score negatively. Small balances and timely payments would help in increasing the score.

 

• A Good Mix of Credit Products: When you have a balanced mix of products and services like installment loans, credit cards, and home loans. It has a good effect on your credit score. How many products you have in your mix makes up for about 10% of your credit score. 

 

• Credit Activity: 10% of your credit score is based on different credit activities such as repayment history, loan types you have applied for, credit limit utility,  and the information regarding opening or applying for various accounts.  

 

The Role of CreditFit in Improving The Credit Score 

CreditFit is a CreditMantri product that helps you improve your credit score. Upon subscribing to CreditFit, you will be assigned with a personal credit coach for a year. He/she will give you valuable insights on how to build and maintain your credit score. 

• What Credit Products To Take: We give you valuable insights on what credit products to take to build your credit score. 

 

• Analysis of Credit Mix: We analyze the existing mix of credit products in your credit report. We then tell you what the ideal split of secured and unsecured credit products should be to enhance your credit score. 

 

• Discover accounts that pull down your credit score: We thoroughly examine your credit report and pull out the negative accounts that affect your credit score. We then guide you on how to resolve these accounts. We help you follow up with a credit bureau and get them fixed. 

 

• Keep your credit utilization in check:  Credit utilization ratio can be defined as the amount of revolving credit you are using divided by the amount of revolving credit available. Experts recommend keeping your credit utilization ratio within 30%. A lower CUR indicates that you can use your credit judiciously without depending too heavily on it. Lower credit utilization will yield higher credit scores. We at CreditFit guide you on how to keep your credit utilization ratio in check. 

 

• Spend Analyzer feature: CreditFit comes equipped with a spend analyzer feature that helps in sending you alerts for your payment due dates, track your daily spends etc. If you make your payments on time, your credit score does not get affected. By tracking your daily spends, you can determine what should be done to maintain or increase your credit score. 

 

• Examine Past Repayment Cycles: We analyze your past repayment trends  - history of EMI and credit card payments etc. for all your credit products. We then throw light on what affects your credit score. Ultimately, we give you tips on how to improve your payment cycle and thus boost your credit score

 

• Helps to Track Your Credit Score: It is important to check your credit score and report regularly. This way, you can identify why your credit score has gone down. Also, if you have any discrepancies, you can raise a dispute with one of the credit bureaus and get them rectified. We at CreditFit help in doing this. On subscribing to CreditFit, you can raise a one-time free account dispute with the Equifax Bureau. We will update you with your latest credit report every month for a period of 12 months to help track your credit score. 

 

Conclusion

Don’t have a credit score or are stuck with a score that does not offer you much? Don’t worry, subscribe to CreditFit and we will put your score to work to get you. Better interest rates on loans and reduced EMIs.  

 

FAQS of How Does CreditFit Improve Credit Score

1:What raises your credit score fastest? 

Paying bills on time and paying your credit card balances are the most important steps that can raise your credit score. Issuers report your payment behavior to the credit bureaus every 30 days, so positive steps can help credit enhancement quickly. 

2:What are some of the benefits and features of CreditFit?  

CreditFit is an application that primarily helps in improving your credit score and procuring loans and credit cards at the best interest rates. Some of the benefits and features of CreditFit include tips to select the best credit products to enhance your credit score, reminders on due dates, tracking your daily spends, identifying accounts that affect your credit score, expert guidance to improve your credit score, and getting the best loans and credit cards, actionable insights to resolve negative accounts, suggestions to reduce monthly EMIs, and one-time free account dispute with the Equifax Bureau.