Multiple measures, including tracking credit score regularly, can help maintain a healthy score

Be it a personal loan, business loan, home loan, car loan, or any other category, lenders will not give credit without first checking the credit score. Checking a credit score is the first hurdle, stated a press release issued from New Delhi on December 14, 2021.

It may be mentioned here that new-age fintech firms such as Clix Capital and other lenders help check credit scores for free.

To begin with, a credit score is a three-digit number between 300 and 900, which reflects the ability to repay debt. This is calculated by keeping track of the payment records and whether these are on time. The number of accounts maintained by the borrower also contributes to credit score calculation. Typically, a score of 750 or higher is considered good.

The credit score assumes significance for lenders as it allows them to assess the risk of lending money to the borrowers. A high score indicates a lower risk of default and vice versa. After this is done, it’s important to keep regular track of the credit score. In case it drops below 700, one will have to work on ensuring timely payments to improve the score.

Clix Capital and other lenders help check credit score for free.