What is credit score & why is it important?
The State Bank of India recently announced interest rate on home loans at just 6.65%. But not everyone can avail the loan at such a low rate. For that, his or her credit score has to be excellent. The country’s largest lender is providing home loans at attractive interest rates for those with good credit scores. And not just loans, a decent credit score will also help you get credit cards too. So a good credit score helps you avail personal, consumer and other types of loans and credit cards easily. But, what exactly is the concept of credit score? Let us find out. There are four credit information companies or credit bureaus in India whose credit scores are popular with both lenders and borrowers. These are TransUnion CIBIL, Experian, Equifax, and CRIF High Mark. A borrower’s credit score ranges between 300 and 900. For a bank or lender, your credit score reveals your creditworthiness as a borrower. Scores that are at least 750 o...