Your credit score plays an important role in maintaining good financial health. The score starts ticking at 300 and continues up to 900. The score signifies an applicant’s financial credibility and is also a reflection of his/her ability to manage loans and repayments. Banks and issuer identities evaluate an applicant on the basis of credit score. So, before you apply for your free credit card, make sure that you have a healthy credit score. If you have repaid a loan successfully within the stipulated time, chances are high that you will have a good credit score. If you are looking for an excellent credit card, apply for the Bajaj Finserv RBL Bank SuperCard and avail exciting deals and discounts at the Bajaj Finserv partner stores.
Check Your Free Credit Score
Keeping a tab on your credit score is important, and you can do so for free. Check your credit score and apply for credit cards with the best lending institutions to save money, and make wise investment decisions. You can check your credit score for your free credit card in the following places.
- Credit bureaus provide free credit score checks once every year. They do so on the RBI mandate, and you can visit their website to check your credit score for free after entering basic details.
- Many third-party portals offer free credit scores as well. They do so as a free service to attract more customers. You can check your credit score a number of times on these sites. Keep checking your credit score during a loan repayment period and watch it improve. However, before you supply the site with your personal information, do not forget to run a background check on the site.
- Some banks also offer free credit score checking services. Make sure you consult your bank and confirm if they have this service in place.
To check your credit score for free, you need to enter basic details such as your date of birth, employment details, mobile number and PAN Card number.
The Importance of Credit Score
Improving your credit score is important. Besides paying your dues on time, it is important to meticulously plan your financial pathway. Having a vision of the future is very important. Apart from getting a free credit card, a good credit score can help you in other ways too.
- Personal loans: These loans are unsecured loans, and thus completely rely on the credit score of the applicant. There is no collateral involved in these loans, and your credit score is your key to success. You may require a personal loan at any point in time, say in case of a wedding or an urgent home renovation. The higher your credit score, the more confidence the issuer places on you.
- Home loans: You need a robust credit score to secure a home loan, because you will be applying for huge funding. Ideally, your credit score should be around 750 to increase the chances of getting a loan sanctioned that actually helps your cause.
- Car loans: Millennials are the first generation that has applied for car loans en masse. By maintaining a good credit score, you can get your car loan approved in no time!
Making Smart Financial Decisions
Whether you want to apply for a credit card or get your loan sanctioned, maintaining a good credit score has a few basic rules. The most important rule is to ensure that you pay your monthly dues regularly. Do not fall for the minimum payment option because the due amount gets carried over to the next month’s payment. Late payments are to be avoided at any cost — set reminders, set auto-debit feature, set alarms — do anything in your means to ensure this. Furthermore, it is also important to keep your credit utilisation ratio low, preferably not more than 30% of the approved amount. Also, make sure that you do not close your old credit card accounts, because a successful payment record is a godsend during the application process.
You should not enquire a lot for updates on the application process because this projects you as needy, and might affect your credit score adversely. Keep the process short and formal, although you can contact customer care once in a while to express your eagerness to get the card approved. As iterated before, you should keep a check on the credit score and discontinue any practice that negatively affects the credit score.
Finally, make sure that you are applying for a card that is worth the hassle. The card should be able to assist you in times of need, so check the terms and conditions carefully. Cards like the Bajaj Finserv RBL Bank SuperCard have a flexible cash advancement facility that saves you during a cash crunch. Ensure that you know all about the benefits of the credit card before applying for one.