Credit Scores, also known as credit information reports, have been around in India since 2000. They are the first and last hurdle to clearing before getting a home loan, personal loan, or any other financial product. A good credit score means that the individual will easily get personal and consumer loans.
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Until a few years ago, not many people knew what a credit score was. However, with consumer loans ramping up like they are in the metros of India, that score has become one of the most critical three digits for an individual. It’s 2025, and consumer loans are a reality.
In some cases, the younger generation actually takes out loans for consumer goods even if they have the money. That’s because they are getting interest-free loans, or loans with very little interest. They don’t want to use up their liquidity for a phone that they know they will be using for a couple of years.
Why does one need a good credit score?
A satisfactory credit report could also mean lower interest rates and discounts on financial products. While these are some basic advantages that could make you look for your credit report, there’s one more that’s increasingly becoming logical. That’s being safe from financial fraud. How can you be safe from financial fraud if you decide to check your credit rating? We explain.
Once you know your credit rating, you get an idea of how much weightage you have in the world of finance, whether you have a good credit score that can get you a home loan or any other financial requirement that you might have. You will also know whether you have the perfect credit score for a loan.
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You will also get an idea of what your score can’t give you. So, if you are approached by anyone who promises you a higher loan amount, you will already have an inkling of the scam that you could have been a victim of. In essence, once you read up on aspects like credit scores, you begin to understand the financial world better, and it is your first step to keep away from monetary fraud and scams.
If a financial company isn’t checking your credit rating, you know that something is amiss. For example, this blogger knows of at least one individual who took a payday loan, got INR 10K as disbursal, and paid more than INR 15K in interests and charges. Before a lender offers you a loan, you should be doubly sure about aspects like the interest charged and the tenure.
In such a scenario, you are already on the path of financial literacy and freedom. With your personal credit check done, you can even contact a credit score repair service and find out precisely what you need to do to have a good credit score. Even if you do not want to take the services of one, all you need to do to get a good credit score is keep on paying off any loans that you have on record.
How to get your Credit Score?
Several companies offer services that you can use to check your CIBIL score. While some are paid, some are free. Nowadays, all popular banks offer free services via their app, which will help you check your credit report. These services are available via their app. The banks usually charge a nominal fee for the CIBIL rate.
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