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Credit Score Range - Know What Is A Good Credit Score Range

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Publish Date: November 05th, 2019

By: Sandhya Kannan, Head – Content

A credit score range about 750 points is typically considered excellent, in a range between 300 to 900 points. Usually, a good credit score range falls between 750 and 800 points. Higher scores reveal disciplined gratitude behaviour in the past, which in turn can make creditors more confident that you are likely to repay your future debts on time. Ideally, the best credit score range is anywhere from 715 points and affords.

A normal credit score range is used by lending institutions to provide credit cards, loans and even car financing or auto purchases to the right candidate. If you want to know how to increase CIBIL score from 500 to 750, you must understand the significance of making payments on time. Doing so consistently and regularly over repeated can boost your credit rating considerably.

Understanding how credit score affects your financial life

Although you may have a low credit score, you could get credit, but it could come with exorbitant interest rates and restrictive conditions. You may have to deposit money or place collateral to obtain a loan. And if you are seeking car insurance, you may have to pay a higher premium or place a deposit for specific credit. But as you slowly add points to your credit score -- by making your EMI and credit card payments on time -- you will be able to wider access to increased credit products.

Know where to begin

By understanding where you currently stand, that is your current credit scores, can help you to monitor and improve your rating. For beginners, obtain your credit score from CIBIL and monitor it regularly. Look into the report for any discrepancies or errors that may have crept in your credentials and rectify them. And because credit scores are decision-making tools for lending institutions, improving your credit-rating must be a top priority. This is because lenders anticipate your likelihood of repaying loans on time when viewing your credit scores. They look into your credit score as a risk factor that you may not be able to make debt repayments as scheduled. Having an excellent credit score is crucial as it is the deciding factor on whether you qualify for a credit card or a loan. Each time you set down a significant financial goal such as buying a new vehicle or becoming a homeowner, your credit score is displayed as an integral component of the financing picture. Your credit rating becomes the single-most deciding factor for lenders to consider when deciding your credit.

Factors impacting your credit score

Your credit score is typically affected by specific elements. These include:

  • Past payment history on credit cards and loans, including the number and acuteness of late payments
  • Your credit utilization ratio (CUR)
  • The number of credit accounts report, it's types and the length of time held
  • The total amount of debt you owe
  • Any public records such as bankruptcy or liquidation
  • New credit accounts recently opened
  • Number of hard inquiries on your credit report

Conclusion

If you are aware of what is impacting your credit score, that is if it is a single factor on numerous factors, you need to address it and work towards enhancing your rating. Once you achieve the ideal credit score, you can maintain it by continuing a disciplined credit behaviour and ensuring that your score remains healthy. And while you practice a disciplined credit attitude, remember to invest for your future. Set down investment goals and create an investment strategy to meet them. Well-known stockbrokers such as Kotak Securitiesalso a plethora of investment avenues ranging from stock trading, derivatives, mutual funds, gold, ETF's and more. Diversifying your portfolio can ensure a sound investment while at the same time, you improve your credit scores.


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