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Credit Score is a Risk Scoring Model used by Banks and Financial Institutions before approving Loans, Credit Cards & other Credit Lines to customers. It defines the Credit Worthiness of the borrower and ranges from 300 to 900. The closer you are to 900, higher the chances of quick loan approval.

Credit Information Companies (CICs) collect, record & analyze data related to an individual’s or a businesses credit history. This includes Loans taken, Credit Cards used, Overdraft Facilities and their repayment behaviour.

This information is documented to form a report, known as the Credit Report.

Credit Score is generated after compiling the information present in the Credit Report.

Therefore, if the information in your Credit Report is Changed, Your Credit Score will Increase.

Credit Score serves as an important barometer for lending institutions to get a quick idea of the borrowers Credit history, repayment capabilities, and overall financial behaviour.

Your Credit Score is a number which can COST or SAVE you a lot of MONEY in your lifetime.

We can help you SAVE that MONEY.

Credit Information Companies (CICs) will provide you one Credit Score and Report without any charge once a year.

If you are already a member login to the CICs website, go to ‘My Account’ tab on the top right of the screen and click on the ‘Get your Free Report’ link on the page.

Alternatively, we can help you to download and analyse your Credit Report for Free.

Credit Score is calculated by using a complex algorithm which depends on the following factors –

 1. Repayment History

Payment history is one of the biggest factors that can affect your Credit score in a positive or a negative way. This is why missing EMI payments and defaulting on repayment of credit can severely diminish your Credit Score

2. Amount Owed or Credit Exposure

Credit Exposure is the second biggest factor that impacts your Credit Score. It is the amount of credit used by you in proportion to your available credit limit. Utilizing too much of your available limit suggests that you are credit hungry and reduces you Credit Score.

3. Length of Credit

It represents how long the Credit accounts have been active.  A long credit history suggests that you have experience in handling credit. It is advised to start building credit history at an early stage as it comes in handy when you are planning to buy a house or a car in the future, requiring higher loan amounts. No credit history does not mean that you have a perfect Credit Score.

4. Type of Credit

The type of Credit you have availed also contributes to your Credit Score. Therefore, it is essential to have a balance of credit.

5. New Credit Accumulation

Number of Credit Inquiries, especially unsuccessful ones, made in the last 12-18 months reflect in your Credit Report. Thus, making multiple loan inquiries in a short duration of time can harm your Credit Score as it represents that you are credit hungry and desperate to get credit.

1. Bad Repayment History

2. Negative closures of loans and credit cards such as –

·        Settlements

·        Write-offs

·        Post Write-off Settlements

·        Suit Filed

·        Wilful Default Cases

3. Submitting multiple Credit Applications

4. Errors in your Credit Report

5. Exhausting your Credit Limits

But don’t worry. Whatever the issue may be for your poor Credit Score, we have a guaranteed solution for you.

 1. Pay Bills on Time

To see a noticeable increase in your Credit Score, you need to pay all credit card dues & loan EMI on time for at least six months

2. Get your Credit Limit Increased

If you have credit card accounts, call and inquire about credit limit increase. If your account is in good standing, you should be granted an increase in your credit limit. It is important not to spend this entire amount so that you maintain a low credit utilization rate.

3. Don’t close a Credit Card Account

If you are not using a certain credit card, it is best to stop using it instead of closing the account.

4. Don’t Overuse your Credit Limits

Make sure that you do not use more than 35% of the individual card limits at any point of time.

Generally, these practices take a lot of time to reflect the improvement in your Credit Score. Also, if your Credit Score is already below 750, these tips might not work very well.

In such cases it is best to take professional help of a Credit Score Repair Consultant like us.