A good credit score paves the way to access credit much faster. It is a good sign of credit health if you find your CIBIL score check to be more than
A good credit score paves the way to access credit much faster. It is a good sign of credit health if you find your CIBIL score check to be more than 750. Your CIBIL Score and Report is a reflection of your credit habits and past credit behavior. Looking to boost your credit score and overall credit health? Well, if you do so then you need to stop believing the misconceptions and myths about a credit score. It is very different from what you consider and gain information about a credit score. Misconceptions will guide you towards a negative credit activity and you will believe what is not true. Good credit saves money, but misconceptions about a credit score will guide you to a financial void. You need to learn the truth about all the myths that you have been thinking of. It is significant to understand how one’s credit score may or may not be influenced by your actions. If you are taking steps to improve your credit score, here are the top 6 misconceptions that may be hindering you from taking a step forward.
What is a credit score?
To begin with, a credit score is the representation of your credit activities and credit behavior. This score identifies all your activities in terms of payments and behavior. It considers your past, present and also determines your future credit opportunities. Do CIBIL score check free regularly if you want credit readiness. A credit score will help the loan provider to understand your creditworthiness and understand your credit health. If you want opportunities to open up, you need this score to be a perfect one. It will not only give you a good rate of interest but also various perks and advantages. It is always safe to have a good credit score and you need to work on it. Things like timely payment, keeping a credit account open, not applying to multiple loans, increasing credit age, and not keeping any overdue amount will help you build a good credit score. One should always focus on a good credit record as that will wave your emergencies in a click. Learn How to calculate business loan by using business loan calculator
Misconceptions about credit score
●Evaluation of Credit report will decrease your credit score
If you believe that by evaluating your credit report, you will hurt your credit score you are believing wrong. This concept will not match with any of the positive or true information. It is very important to evaluate and check your CIBIL score for free. This will help in understanding where you stand before you apply for a loan. A credit report is a detailed statement of all the credit activities that you have been through. This report will not hurt your credit score anyways. You need to ensure that you check your credit report to stay updated and also detect any error if any. Errors are not your fault but can negatively impact your credit score. If you are believing this and not checking your credit report you are making a mistake. This will harm you if you are not making yourself credit-ready. This will help in finding your credit activities and what are the things that affect your credit score the most. Forget this misconception and always evaluate your credit score.
● Not using an open credit card can affect your credit score
This point depends on a variety of factors which include whether you have created a balance on the credit card. If it is paid off, then it leads to a decrease of debt to credit ratio which is a contributor towards a good credit score. Using your credit card for minor purchases and then repaying the balance in full every month will create positive payment behavior and also keep the card “active”. So if you are believing this misconception, you must make sure about the exceptional cases. Make sure you are making timely payments of the bills and keep your credit limit always under control.
● Application for a new credit card will not affect your credit score
This is a misconception if you are believing it. If you apply for a credit card it will surely affect your credit score. Do not think that there will be any effect. When you apply for a credit card, the hard enquiry will be run on your credit report and this will decrease your credit score. So only apply for a credit card when you need it the most. Just for the sake of trying out new loan products, do not apply for any credit card and hamper your credit readiness. Make sure you keep this in mind and CIBIL score check free using various websites.
Go for the CIBIL score check free option, if you want credit readiness. This will open up ample reasons to find a good loan product. It will help you understand where you stand and also help you fetch the best credit deals when you CIBIL score check regularly.