How can I get my experian credit score for free?
To get a personal loan, you should maintain a minimum credit score of 720 to 750. Every bank checks this score and then accepts your personal loan application. If your credit score does not fall in this range, you won’t get a loan approval. Though other factors also matter in securing a home loan, having a good credit score is one of the primary ones.
Let me share my experience with you. I applied for a home loan last year with a credit score of 629. My bank evaluated every parameter and found that my score is below its requirement range. They suggested I must improve it, make it around 700 points and then they will consider me for a loan.
So, I took all the necessary steps to increase my credit score, such as:
- Paying off my EMIs and outstanding credit card amount on time
- Limiting new credit card applications
- Managing a mix of credit types
- Keeping my credit utilisation limit below 30%.
And, within a few months, the score improved, and I got the loan for buying my dream home.
However, there are different minimum credit score criteria for distinct banks and Non-Banking Financial Companies (NBFCs) for approving personal loans. But most of the financial institutions prefer applicants with a credit score of 700 or above. Otherwise, it can lead to loan rejections or much higher interest rates.