A credit score is a numerical tool that shows your creditworthiness. It is used by banks, lenders and other financial institutions to check your credit risk and ability to repay your credits on time. A good credit score improves the probability of getting easy approvals for credits and loans.

You can check your credit score for free from credit bureaus such as CIBIL, Highmark, Experian and Equifax.

You credit score can be affected by factors such as your repayment history, credit utilisation ratio, types of credits used, length of credit history and errors in your credit report.

Yes. Banks and lenders consider a credit score of 700 and above as ‘good’ as it shows your credit worthiness. It demonstrates that you can handle your credits responsibly, both in terms of usage and repayment.

A credit score that falls in the range of 300-550 is considered ‘bad’. People with a bad credit score find it hard to get loans as they are viewed as risky borrowers by financial institutions.

Your credit score is calculated by the credit bureau, which takes into consideration factors such as credit repayment history, credit utilisation ratio, length of credit history, types of credits used and number of inquiries done by financial institutions.

The credit utilisation ratio is the percentage of available credit on your credit card that you use in a given month. It is calculated by dividing the amount of credit being used by the total credit limit on your account.

Yes, it is extremely important to check your report on a regular basis. This helps you understand your current credit position. It also enables you to detect any errors in your credit report.

If there’s any error in your credit report, you can get it corrected by the credit bureau. Raise a dispute request via call, email or online with your credit bureau. Remember you need to explain the error and submit any documents that support your claim.

No, checking your credit score or reports regularly does not affect your credit scores. Only hard inquiries done by financial institutions can affect your credit score.

You can improve your credit score by making payments on time, maintaining your credit utilisation ratio, avoiding opening new credit accounts in a short period of time and checking your credit report for errors.

Yes, your credit score will improve if you clear your credit card bills on time .