To assess your financial profile, lenders may evaluate your credit score from CRIF High Mark. This is a leading credit bureau in India and one of the four bureaus that lenders rely on to check a borrower’s reliability and readiness for new credit.
A good CRIF score can support you in getting the loan amount you desire at pocket-friendly rates. So, read on to learn more about it as well as some effective strategies to increase your CRIF score.
The credit score from CRIF ranges between 300 and 900. This score is based on various factors, with a stronger CRIF score indicating more responsible credit behaviour and a higher likelihood of getting a loan.
Here are the factors that affect your CRIF score.
When you repay credit responsibly and make other smart moves, you can build a high CRIF score. Banks and other financial institutions generally consider a score of 700 and above as a good CRIF score.
Here are the benefits of having a high CRIF credit score:
If your CRIF score is lower than 700, it is necessary to employ certain strategies to improve it. Follow these strategies:
The foremost step in repairing your credit score is to check your credit report regularly. Tracking your report helps you to identify good credit habits and eliminates the ones that bring your score down.
There may also be inaccuracies in your credit report, which can decrease your score. If this happens, you can file a dispute with the credit bureau and get them rectified at the earliest.
An important factor that may significantly bring down your CRIF score is defaulting on a loan or credit card or making late payments. It is crucial to make timely repayments to ensure your credit score improves.
One of the main reasons for a low CRIF High Mark credit score can be a higher-than-ideal credit utilisation ratio. By maintaining your credit utilisation ratio below the 30% mark, you can improve your CRIF score.
If you make multiple applications for loans or credit cards in quick succession, it can negatively impact your credit score. So, avoid filling out application after application within a short span to avoid reducing your CRIF score.
Having a varied credit experience also impacts your CRIF positively, which means taking on both collateral-free and secured loans. However, ensure you apply for different types of loans only if you are confident of repaying them on time.
In conclusion, a high credit score is a prerequisite if you wish to avail of a loan. So, it is often difficult for those who are new to credit or have a low score to avail of a loan. However, if you find yourself in a spot, you can rely on Fibe. Our alternate credit scoring mechanism allows even those who have no or a low score to get access to affordable loans.
Apply online for our Personal Loans to get up to ₹5 lakhs with a simple application process and minimal paperwork. Download the Fibe Personal Loan App or register on the website to start your journey!
There can be several factors resulting in a low CRIF score. These include late repayment, high credit utilisation ratio, multiple credit requests in a short span and more.
Many factors affect your credit score from CRIF, including repayment history, credit duration, credit mix, credit utilisation ratio, new credit inquiries, etc.
Yes, CRIF High Mark is one of the four credit bureaus approved by the Reserve Bank of India.