In the world of technology, people rely on financial advisors and banks to get money on loans. A person can have a loan for various purposes like for health, building a house or any other building, to start a business, and other various purposes. There are different steps that a person might need to go through before having access to a loan because banks and other financial groups need to be sure that the person can pay back the amount of the loan. This is ensured by the banks with various measures like checking the credit history of the person. In a video by Govind on YouTube, gives tech tips to everyone on various benefits if checking your payment history and if you are eligible to get a loan.
The payment history is checked with the help of a credit score. A credit score depicts if you have paid your bills on time, how many accounts you have on you, how many loans you currently have and the types of those loans. All these things together add up to a number which can range anywhere from 300 to 850. The higher the score is the greater are your chances to get a loan. Usually, a score any less than 640 is considered to be below average and banks or other institutions tend to charge higher interest rates to those people. It is harder to get approval for a loan if your credit score is less than this number. A score above 750 is considered good and you can get approval easily. Many people tend to have various questions related to credit score review by the banks. Some of the most common questions are answered below:
- Why is it important to check your credit score?
It is very important to keep track of your credit score regularly because that way you will be able to know if you will get a line of credit or not before applying for one. There can be a mistake made in your credit score which can be corrected by talking to the professionals in the banks or other people who can help you out.
- Does checking your credit score have any negative impact?
The impact depends on the type of checking we are talking about. There are two types of credit score check, first is the hard inquiry while the other is the soft one. The hard inquiry is made by the financial institutions to check your background before taking any decision about your credit, it can affect your credit score while the soft inquiry is made by individuals which do not affect the credit score at all.
- Is the One Score app free?
The One Score app for checking your credit score is the best tech companion for you. It not only checks your credit score for free but also suggests ways to improve it.
If you have questions in your mind like how to check the CIBIL score, then you can use One Score app which is the best free app to check your credit score.