credit score

What Is The Credit Score Sought for Loans and Credit Cards?

The dreams or say the goals are often hidden in the power of finance. Doesn’t matter whether it’s about buying the prized possession like a home or shopping for the latest iPhone in the market, most tend to be found short of the savings to fulfill the purpose. And therefore, the need for a finance from banks or other financial institutions on attractive terms become prominent, to say the least.

Even though a good income instills confidence in you and lenders about your repayment potential. But your past sins of default or mistakes in repayment, rather unknowingly, can haunt you with a credit disapproval owing to a poor credit score. And there are many not knowing what’s the ideal score for a loan or credit card, which creates only confusion. The article on credit score, which remains in the range of 300-900, is thus a vital read to get a clarity on the same.

Credit Score Required for Personal Loans

A personal loan can be availed for numerous purposes such as marriage, education, as well as buying a consumer durable, etc. As a personal loan is granted without having you to submit a collateral for the same, the credit score must not be below 700 to gain an approval. It would be only better to have a score of 750 and above to not only get an approval but also the attractive terms to service the debt. Personal Loan Interest Rates are found to be within 11%-25% across banks in India. The gap between the ranges is more than double to that of the lowest. So, if you have a good score, you can bring the rate either to the lowest or close to that. Plus, the loan amount can also be more, raising toast to your dream fulfillment.

How Much Score Do You Need for Home Loans?

Seeing the advertisements on home loans these days, tons of applications flood the bank desk. While some see the light of the day, others get rejected due to numerous reasons including a poor credit score. Since the loan is secured with an equitable or registered mortgage of the property, a score of 650 and above can be seen as a gateway to buy a home on loan. As it is a secured loan, the rates are lower compared to a personal loan with 8.45%-10% per annum across a majority of the lenders. A good score can thus help you fetch an attractive deal to lower the cost of home acquisition.

Read Also: Details On CIBIL Score Check by PAN Card Process

Credit Score Sought in Credit Cards

Credit cards are often used these days to shop for the groceries to travel tickets, giving the customers the luxury and savings they seek. Even you would want to enjoy shopping with credit cards if you do not have any. For you to gain an approval for the card, a score of 750 and past is vital. If you have such a score, you can take the best credit cards with you.

Credit Score Check Free Online Explained

Now comes the important point i.e. credit score check free online. You can check the score on the website of CIBIL, Experian or any other credit bureau. However, CIBIL score is given more importance because the noted bureau is believed to be holding a large number of credit records in India. Coming back to checking the score, you need to visit the website of the bureau, enter a few personal and credit details before creating a login. You can thus log in, post the creation of credentials, to check your score.

 

 

 

 

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