A good credit score is immensely important for getting a loan on favorable terms. But do you know how to work on increasing your credit score?
Read ahead to learn how to improve CRIF score.
The credit score is a 3-digit number that tells about your creditworthiness to the lender. Credit scores range from 300-900 and a higher score is always considered better. Even though procuring a loan does not depend only on the credit score, it is a very important factor.
When lenders see a high credit score, they understand that you are a responsible borrower. It also throws a positive light on your credit behavior. That, in turn, helps you negotiate a loan on better terms.
Now that you know how to improve CRIF score, let’s take a look at the benefits of a good CRIF score -
A good credit score paves your way to easy credit products. It gives you more power to negotiate a loan at affordable interest rates and longer tenures.
If you have a low credit score and want to know how to improve CRIF score, the key is to be patient. It might take you time to build a good credit score, but it is not impossible. Generally, a CRIF credit score of 700 or 750 is considered good enough for most credit products.
Both CIBIL and CRIF are well-known credit information bureaus and can be used by banks depending on the type of loan you are applying for. Out of CIBIL and CRIF, CIBIL is the more commonly used credit score in India.
Yes, the CRIF High Mark is approved by RBI and SEBI both.
The CRIF High Mark credit score is used by banks, NBFCs, or lending institutions to learn about the creditworthiness of their borrowers. Lenders may choose any credit information bureau depending on the type of loan applied for as well as their preferences.
The most commonly used credit scores in India are CIBIL, Experian, CRIF High Mark, and Equifax. Out of these, the first two are more commonly used.
A CRIF score of 792 is considered a good score for most loans or credit products.
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