Shweta Jain, Founder, Investography, says “there are two things to remember when you are inquiring. There is a soft inquiry that you yourself are doing. So, when you are checking on whether it is the CIBIL website or a GPAY website, for example, that also lets you check your CIBIL score or a site like a BankBazaar. You can check on your own by putting some basic information, that is called a soft inquiry because you are not really applying for a loan or anything versus if you are applying for a credit card or a loan, they will check your credit score which means that is a hard inquiry.”
What is credit score? What is the likely range of a credit score, which credit score is considered to be the best one? Also, how can we build a good credit score?
So, a credit score is a three-digit number between 300 and 900 that tells institutions how credit-worthy you are. The lower your number is, the worse off the credit score is and the higher it is, the better it is. It is basically a number that is issued by an institute like, say CIBIL, which gathers information about you. All the banking, financial history, transactions that you are doing, this information is collated and a number is assigned to you and that is a number between 300 and 900.
So, all the banking transactions that you are doing will be taken into consideration when they are assessing what your credit score should be.
So, how does one build it? It starts with a basic bank account. If you have never taken a credit card or