How can I check my credit score for free online?

Your credit score is the primary factor that determines whether a bank or a financial institution will provide you a loan or not. Before approving a loan, a financial institution checks the credit score and asks for the credit report of the borrower from one of the three credit bureaus of the nation. Having a good credit score i.e. more than 750 is beneficial in several ways. It will help you to get your loan approved quickly and on lower interest rates. The higher your credit score is the better is your creditworthiness.

According to the guidelines of the Reserve Bank of India (RBI), the rate of interest to be charged on a loan is determined as follows: External benchmark rate + margin charged by bank + risk premium.

The risk assessment determining criteria for borrowers varies from bank to bank. Some banks rely solely on the credit score of the borrower while other banks and NBFCs have their own internal risk assessment teams.

So, keeping a watch on your credit score is important if you want to obtain a loan without any difficulty and at low-interest rates. You can check credit score for free by visiting the website of any financial institution.

How to Check Your Credit Score and Credit Report?

Check your loan or credit card statement Many financial institutions and lenders have started providing credit scores for free to their customers. You can check that on your statement, or you can get your credit score by logging in to your account.

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Purchase Credit Scores and Reports from three main credit bureaus or other service providers by visiting their website. All the credit bureaus provide one credit report for free every year.

Use a site offering free credit score check service, which provide free credit score to their users. Some sites provide credit score to customers paying subscription fees for monitoring their credit scores.

Your credit score affects nearly all aspects of your financial cycle, so it’s vital to regularly monitor your credit score. You will be able to maintain a good credit score and also to keep a tab on unauthorized transactions.