Question 1

How Is My Credit Score Computed?

Accepted Answer

Credit Usage

Your credit utilisation ratio plays a major role in deciding your credit score. For the uninitiated, this credit utilisation ratio is computed by comparing one’s overall outstanding amount to the total credit limit available to them. Ideally, using around 30%-40% of your overall credit limit will help you maintain a high score.

Length Of Credit History

A credit score is computed by taking into account one’s credit history. So, it only makes sense that people with a longer credit history will have more information to provide regarding their credit transactions. Handing your credit responsibly for extended periods of time will go a long way in ensuring that your credit score comes out accurately as well.

Payment Consistency

Since we’re already on the topic of credit history, it’s time we talk about another aspect pertaining to this element that we’ve touched upon briefly – consistency in credit payments. It doesn’t take an expert to understand that paying your dues (such as bills, EMIs, loan amounts) on time will go a long way in positively impacting your credit score.

Credit Inquiries

A factor that most people aren’t aware of when it comes to their credit score is the fact that inquiring about this score can also impact your credit rating. Don’t worry – we’re not talking about an individual checking their credit score. Rather, it’s when multiple banks and NBFCs frequently check your score that there’s an impact – albeit, a minor one.

Total Accounts

While it may not have a major impact, having a good mix of both secured and unsecured credit can certainly play in your favour while computing your credit score. Avoid taking too much of one, since it might upset this balance – and, consequently, your credit score

Question 2

What Does My Credit Score Range Imply?

Accepted Answer

NA/NH: If your credit history isn’t lengthy or descriptive enough, then you won’t have a quantifiable credit score. Instead, your report will show your score as Not Applicable (NA) or No History (NH).

300-549: Having a credit score in this range is not ideal in the slightest. There’s a high chance that your loan request will be rejected outright. Even if your request will be approved, significant restrictions will be imposed on the same due to the lack of reliability indicated by this score.
550-649: A credit score in this range is considered to be an average score. If you wish to attain approval on sizeable loan requests with lesser restrictions, then measures need to be taken to ensure the same.
650-749: This range is indicative of a good credit score. You should experience little to no problems with lenders giving you the credit you require.
750-900: A credit score above 750 is an excellent credit score that places the ball in your court. Approvals on your loan requests will almost never be rejected – in fact you can actually negotiate for better interest rates and lower restrictions at this point.

Question 3

How Can I Improve My Credit Score?

Accepted Answer

The following sections should make it abundantly clear that maintaining a good credit score is imperative if you wish to satisfy your financial requirements. Clix Capital recommends the following actions for you to undertake if you’re aiming to increase your credit score.

Regular payments are a must. Regardless of what your dues might be – credit card bills, loan EMIs, or anything else along the same lines – make sure that you never default on your payments.
Manage your credit wisely. Plan out your finances and take loans accordingly. Being careless when it comes to taking loans and issuing credit cards won’t just be bad for your credit score – it’ll also prove to be highly detrimental for your financial status in the long run.
Make it a habit to track your credit score regularly. This will help you map out your credit behaviour, identify any problems that might be negatively affecting the same, and get any mistakes corrected if they arise.
Keep your credit utilisation ratio in control. Exceeding 30%-40% of the limit on your credit card is not recommended. It’s also important to avoid having multiple outstanding unsecured loans or credit cards.

Question 4

How Do I Compute My Credit Score?

Accepted Answer

Clix Capital has teamed up with Experian to provide you with an excellent way to measure your credit score. Just follow the steps mentioned below and you’re all set!

Fill out the form present on the website. You’ll need to submit the following details:
Gender
Full Name
Date Of Birth
PAN Number
Pin Code
Email Address
Mobile Number
Check the box that indicates your agreement to Clix Capital’s Credit Score Terms Of Use.
Once you click on the “Get Your Credit Score” button, you’ll be asked to verify
your mobile number via an OTP.
While your score is being fetched, you’ll be asked to state your occupation type, employer name, and monthly income as well.
After accomplishing all these steps, you’ll receive your credit score. It’s really that easy!

Question 5

How Do I Interpret My Credit Report?

Accepted Answer

At a glance, your credit report might seem somewhat overbearing. To make the task of analysing this report easier, Clix Capital has provided a section-wise breakdown of what’s present in this report and what you need to focus on.

Personal Information: This section of the credit report contains information pertaining to your identity. This includes the person’s name, address, current and previous accounts, and date of birth, among other such details. It’s important to check this section for any errors so that you can report this to the credit rating agency and prevent the possibilities of credit fraud.
Account Information: This section will contain information about your past and present credit account. It includes the following details:
Opening Date
Creditor Name
Current Balance
Credit Limit
Monthly Payment History