Credit Score

To buy a new car from a car dealership, applicants need to have a credit score of at least 700 or above. Today, many dealerships offer cars through loans at low-interest rates. However, to avail of these offers, applicants need to have a good credit score.

A credit score of 637 is generally considered fair since it falls within the range of 580-669 as per the categories set by various credit rating agencies. However, with this score, borrowers may find it difficult to get loans at favourable terms. An ideal score for loans on favourable terms and lower interest rates is 700+. 

You can easily reach an 800 credit score by managing your credit prudently. You don’t need to be ultra-rich to reach this score. Here are some simple tips if you want to cross the 800-mark on your credit score: 

The credit score is a variable. From the time of your first credit, it slowly builds up based on your credit activity. It has been found that your credit score peaks when you are between the ages of 50 and 60. 

Borrowers with such credit history can go for secured loans or secured credit cards. This type of credit is offered against security that is deposited with the bank, like FDs or security bond

Credit scores range between 300 – 900. A score above 750 is considered healthy and can land you good loans with attractive terms. Any score above 750 is very good and a score of 869 is considered excellent

A ‘Hard Enquiry’ happens when you have applied for a credit card or loan in recent times and the lender accesses your credit report to check whether you qualify. 

You can get a car loan even though your credit score is lower than 650. It's not impossible, but it's a little disadvantageous for you. It's up to the bank's discretion to lend you the money. However, you might get unfavourable conditions with respect to the interest rates and other loan benefits in a car loan with such a low credit score.

If the account is a credit card and you are using it judiciously, you may lose your opportunity to build your credit score. Also, if an account drops off from your credit report, it may lead to a fall in your credit score.

Owing to the importance that credit reports play in getting credit, you should dispute any information you believe is incorrect or inaccurate. You can get these errors corrected or removed from your credit report.

Starting a business entails a lot of endeavour, time and passion, requiring one to draw out a business plan, prepare various documents and recruit people, requiring sufficient finance. Most of them normally finance their initial business needs from their savings and make use of personal assets like their home as collateral.

A Credit Report is a rating based on the information given by banks and financial institutions to the credit bureaus. There are very many chances for errors while preparing your report. You are entitled to report any errors that you may find in your credit report. 

Credit bureaus collect information from various banks and financial institutions to prepare your credit report. Each credit bureau has its own proprietary algorithm to calculate your credit score. 

Your credit score is an important factor to consider when applying for a home loan. Home loan lenders can process your home loan with your preferred loan amount and other desirable benefits if you have a great credit score.

Your credit score is a three-digit numerical value that reflects your credibility. It's based on your credit history, which is extracted from details in your credit report like the ‘Accounts' and 'Requests' pages. It normally falls between 300 and 900.

Credit Rating Agencies (CRA) are entities that measure the financial capability of large-scale borrowers, such as businesses or governments.

Since their introduction about a little more than a decade ago, credit rating agencies have provided immense services to the banks and financial institutions in determining the credibility of a borrower. CIBIL™ was the first credit rating agency to establish itself in the early 2000s, followed by other agencies like Equifax, High Mark and Experian. 

Individuals are becoming increasingly dependent on credit. The current economy has made credit essential and attractive for borrowers. Furthermore, there’s also social pressure to own a house or drive a luxurious car that forces individuals to seek credit to fulfil these gratifications. 

Yes, restructuring is capable of negatively impacting your credit score, which is why it is a last-ditch effort. Loan restructuring is seen as a desperate action taken when borrowers are on the verge of defaulting. That is when negotiating the alteration of an existing loan contract is the only way to repay the debt. 

Generally, medically bills do not appear on credit reports. But in rare cases they can appear if you haven't paid it for at least 180 days. Here is where you have to be cautious because once the unpaid medical bill goes to collection then the collection will appear on your credit report and as usual it will continue having a long-term negative impact on your credit report. 

Your past financial mistakes stay as negative remarks on your credit report for several years. But the mistake may not be yours always. You can be wrongly marked by the lender or the credit bureau. Either way you are the one getting affected. Here are some ways you can remove unfavourable credit report entries from your credit report.