FACTS ABOUT CREDIT SCORES
9 SHOCKING FACTS ABOUT CREDIT SCORES THAT WILL SURPRISE YOU
Credit scores, critical for loan approvals, are influenced by age, income, debt-to-income ratios, and require regular credit usage and timely payments for maintenance.
Credit : PEXELS Here are some shocking Facts About Credit Scores That Will Surprise You
Credit : PEXELS Loan application or rejection
A good credit score matters a lot, but factors such as age, income, DTI ratio, profession, and residency also influence loan approvals.
Credit : PEXELS No Credit card, no credit score
Regularly using credit cards for expenses and timely payments builds and maintains a good credit score.
Credit : PEXELS Income does not affect Credit score
Your income does not affect your credit score as well as changes in income, whether increases, decreases, or job loss, have no impact on it.
Credit : PEXELS High Credit Score leads to better loans
A higher credit score improves loan terms and negotiation advantages for applicants with good eligibility.
Credit : PEXELS Credit Score Calculation has other factors too
Timely repayments are crucial for credit scores, but factors like credit utilization, loan mix, ageing, and applications also matter.
Credit : PEXELS Four CICs for credit scores other than CIBIL
CIBIL is one of four RBI-registered CICs along with Equifax, Experian, and CRIF High Mark that calculate credit scores using different algorithms, leading to varying scores for the same individual.
Credit : PEXELS Investments are not considered in Credit Score
Your credit score only accounts for loans and credit cards; investments have no effect. Actions related to investments won't influence your credit score.
Credit : PEXELS Bureau doesn't edit your credit information
CIBIL, a credit bureau, collects credit data from banks and NBFCs regarding loans and credit card payments, generating your credit score without altering the information independently.
Credit : PEXELS Checking Credit Scores Regularly doesn't affect it
You can check your credit score as often as you like without affecting it. Only banks inquiries impact your credit score.
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