Facts and Information You Should Know About Credit Scores
The creditworthiness of a person is indicated by their credit score, which ranges from 300 to 850.
Equifax, Experian, and TransUnion are the 3 major credit reporting bureaus.
A vital factor in a lender's choice to provide credit is a credit score rating.
If you're wondering how a credit score is determined, you should be aware that it depends on a number of variables.
It includes your credit history, credit mix, credit age, and the number of hard inquiries.
Credit scoring takes into account a person's debt total, length of credit history, loan types, and repayment history.
One aspect considered when determining a credit score is credit utilization or the percentage of available credit currently being used.
Since doing so can harm a person's credit score, it is not always a good idea to close a credit account that is not being used.
The majority of third-party websites and credit bureaus offer free credit scores.
You can register with them and access your free credit score whenever you want.
Only after a person has obtained credit from banks, NBFCs, or online lenders is a credit score available.
Credit cards, personal loans, home loans, two-wheeler loans, loans secured by property, gold loans, auto loans, etc., are examples of this.