Finance Care in India - Credit Card, Credit Score, Fixed Deposits

A credit score is a three-digit number that portrays your creditworthiness to the lender. Before sanctioning you a loan, your lender looks at your credit score to evaluate how creditworthy you are and whether you will be able to pay the loan or not. It ranges from 300-900. The better the score, the more are your chances of loan approval. But are you aware if you have a low credit score , it can affect your relationships as well apart from the rejection towards loans and credit cards? 1) The rate of interest on your loan is decided based on your credit score itself. You will be offered a low rate if you have a good score and a higher one if you have a poor rating. 2) It might also influence your relationship as well if one partner is managing the total expenses, and the other is not. 3) You might not get a loan or even a credit card if you have a low or poor credit score, an especially personal loan which requires a good score above 7...

When you look to avail loans, one of the most common eligibility requirements which you find is a good credit score. Lenders offer you a loan only if your score is 650 or 700 and above. The higher the score the better deals can you find on the loan. The Cibil score depicts your creditworthiness and tells the lender the possibility of repayment of the loan. While many of you know that a good credit score is needed, what you might not know is the fact that there are some factors which affect your credit score. If you know these factors and how you can influence them, you can improve and build a good credit score. So, here are five of the most important factors which affect your credit score – Repayment history The repayment history of your existing debts influences the major part of your credit score. It contributes to 35% of the score. That is why to improve your score you should always pay your liabilities on time. 2. Credit utilization This is th...