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How Do You Know If Your Credit Needs Repair?

It is always important to understand what leads to a problem if you want to fix it. The same goes for a bad credit score. Factors that can negatively impact your credit score include not paying bills on time, having a balance on credit cards, and many more such reasons.

As these are capable of bringing down your credit score significantly, it is essential to identify and remedy such factors, while also checking for credit report errors.

What Is a Credit Score?

A credit score is a 3-digit number that indicates how well an individual has been managing credit - especially with regard to loans and credit cards. In India, it ranges from 300 to 900. The closer you are to 900, the better your chances are of getting loans and credit cards, especially at good terms and rates of interest. Conversely, if your credit score is in the lower range, you may not get any reasonable offers at all.

Your credit score is based on the information provided on your credit report, which is a detailed account of your credit-related behaviour. For lenders and banks, the score is quite essential, as it lets them know whether you are trustworthy enough to give loans to.

What Is a Bad Credit Score?

As said above, if you are a long way off from the 900 mark, it means that lenders will deem you less trustworthy. There are specific marks beyond which your score is considered to be a low credit score or bad credit score. Here are the credit score range categories:

Score Range

Category

300 - 579

Poor

580 - 669

Fair

670 - 739

Good

740 - 799

Very Good

800 - 850

Exceptional

Signs of a Bad Credit Score

  • Loans rejected or credit card rejected: If you have a low credit score, lenders will be less inclined to give you further credit. Hence, your loan or credit card application being rejected could be indicative of a bad credit score. After such rejection, however, you are eligible to get a free credit report for checking.

  • Credit account closed by a lender: If you do not pay on time very often, lenders may write off your account as bad debt. If this happens to your account, it is a clear sign of a bad credit score.

  • Low credit limits, bad credit offers, and high APR: Even if some lenders are willing to give you loans, these loans would come with high APR and low credit limits. With a bad credit score, it is pretty much a given that you will not be getting good deals.

  • You get calls from debt collectors: When you get calls from debt collectors, it means you have debts that you have not paid back on time, which can significantly undermine your credit score.

The Solution

If you notice any of the signs mentioned above, it is time to check your credit report to see what is wrong. Reviewing the report can tell you whom you have to pay, which accounts need more attention, etc. In case any of the credit bureaus have made an error in calculating your credit score, checking the report can alert you to that as well.

The good news is that you can check your credit score on the mymoneykarma website. As the service comes free of cost, you can use it regularly to keep a tab on your credit score. That way you can readily identify when and where your credit health needs repair.

To Wrap Up

Having a bad credit score is detrimental in many ways. You may not be able to get loans, credit cards, or any other form of credit.

mymoneykarma understands your problem. That is why we offer you affordable credit repair services. Once brought back up with the needed repair, your credit score will no longer be a hurdle to any of your credit prospects.

 

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