Taking a loan of any kind is not an easy decision as people go to the bank only in extreme circumstances. First, they look up to their friends and relatives to arrange the funds and if that doesn't happen, then they go to banks. Be it a home loan, personal loan or car loan, banks first take a look at the eligibility of the borrower and scrutinize their profile before granting final approval. So, if you are also planning to take a loan, you should check your eligibility first and that mostly depends on your credit score. If you have a good credit score and repayment history, you are most likely to get a loan.
A credit score helps lenders identify an individual's loan credibility. Individuals are given a score between 300 and 900 based on their credit history, repayment history and defaults (if any). A credit score above 750 is considered excellent while a score between 650 to 750 is deemed average and below 650 is considered a poor score. So, if you have a credit score over 800, banks give you a rebate in interest rate, as well as your loan eligibility, gets a bit higher.
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There are certain agencies that provide credit score rating services that include CIBIL and Experian. While CIBIL charges a fee for credit score, you can check your score for free on WhatsApp using Experian services.
Below is the step-by-step guide to check credit scores for free on WhatsApp:
Step 1: Save +91-9920035444 this number in your contact book.
Step 2: Send ‘Hi’ to the WhatsApp number
Step 3: Share a few basic details, such as your name, e-mail ID, and phone number
Step 4: Receive your Experian credit score via WhatsApp instantly
Step 5: Request a password-protected copy of the Experian credit report which will be sent to your registered e-mail ID.
Be mindful that only credit score is not the lone criteria for sanctioning of a loan. Banks take into consideration several factors before granting a loan but credit score is one of the first checks performed by them.
