In simple and basic term credit score is a 3 digit static numerical value which represents the creditworthiness of any individual. It is based on the credit history of that individual. All banks, lending Institutes, lenders and NBFC evaluates credit score to know an individual will able to repay the loan or not?
The average credit score between 300 to 750 but if you have a high credit score then you will get loan approval fast and high loan amount.
The various lenders, private & government banks and NBFCs use the individual credit score to determine that the individual is trustworthy or not and if he/she able to pay back the loan amount? It is also used to determine credit limits, If your credit score is good then you can apply for a bike loan to buy your favorite bike. You can also visit this link to check bike loan eligibility.
Here are Some Ways to Improve Credit Score:
- Always pay the bills and loans on time
- Request for a new credit account only if necessary
- Try to fix your credit utilization ratio
- Manage your debts
- Maintain a diversified credit mix
- Always keep eyes on your credit report
Hence, these are some methods, which will improve your credit score. If you want to read these ways into detail, you may visit this blog (How to Improve Credit Score Fast). The good credit score will higher the chance of approval for any loan applications and also helps you to get a loan at the best interest rate.
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