A credit score represents your creditworthiness and is assessed by lenders to calculate the risk of lending you money. Usually, a higher credit score makes it easier to get loans with better terms, while a lower score can limit your options.
Bajaj Finserv, a leading financial services provider, offers a one-of-its-kind “Credit Pass” subscription service which lets you monitor and track your credit score. Also, subscribers get to use a personalized dashboard and periodically receive credit health reports.
Moreover, maintaining accurate personal details like those on your PAN card are important. This helps in avoiding discrepancies, which can negatively impact your credit score.
Let us understand the role of credit score in determining your loan eligibility and see how Credit Pass by Bajaj Finserv can help you monitor and improve your credit scores. Also, we will learn how you can make PAN card corrections following a simple step-by-step guide.
A credit score is a numerical representation of an individual's creditworthiness. It ranges from 300 to 900 and is provided by CIBIL, one of India's main credit information companies.
It is worth mentioning that a high CIBIL score enhances loan approval chances and helps in securing favorable interest rates. CIBIL calculates these credit scores based on an individual's credit history and financial behavior.
Credit scores reflect the borrowing and repayment habits of borrowers. They are widely used by lenders while extending loans. Let’s understand why these scores are vital in the loan approval process:
To help individuals track and monitor their credit scores, Bajaj Finserv offers India’s first subscription-based service called Credit Pass. Powered by CIBIL, you can use Credit Pass to easily check your credit score and get a detailed overview of your credit health. To understand better, let’s check out some of its major benefits:
Using the Credit Pass, you can quickly check your credit score through a personalised dashboard that shows your overall credit health. This helps determine if you can easily get a loan or credit card.
All Credit Pass subscribers get a customized dashboard, which is easy to use and lets you view all your credit cards, loans, repayment history, and more in one place.
Credit Pass lets you monitor important factors that affect your credit health, such as repayment history, credit utilization, length of credit history, types of credit, and loan inquiries.
Let us take a look at an example:
Shalini has a home loan and two credit cards. She pays her EMIs on time but finds it difficult to track all her loans and monitor her credit health. After obtaining the Credit Pass subscription, she can get a comprehensive summary of her repayment schedules, details of her various loans, and other financial information in one convenient location (dashboard). Also, she can regularly track her credit score and periodically receive credit health reports.
Credit scores directly influence an individual's loan eligibility. Let’s see how different credit score ranges affect your chances of securing a loan and interest rates:
CIBIL score range | Remarks | Indication |
Less than 650 | Poor | Indicates a history of delayed payments. High risk of default. |
650-699 | Average | Suggests struggles with meeting payment deadlines. |
700-749 | Good | Indicates good credit behavior. Higher chances of loan approval but might not get the best interest rates. |
750-849 | Great | Showcases consistent and timely payment history. Low risk of default. |
850-900 | Excellent | Easiest to secure loans with lower interest rates. Lenders are highly likely to approve loan applications. |
It must be noted that the Bajaj Finserv Credit Pass is an excellent way to keep track of your credit score and understand your financial standing. Using it, you can check your updated CIBIL score every month. Please note that frequent checking of credit scores does not impact it.
Furthermore, premium plan subscribers get access to predictive tools, such as a credit score simulator and EMI calculator, which further help in making informed choices while applying for loans and credit cards.
At the time of evaluating loan and credit card applications, most lenders consider the following factors:
Payment History: Timely repayment of previous loans and credit card bills.
Credit Utilization Ratio: The ratio of current credit card debt to the total available credit limit.
Length of Credit History: Duration of the borrower’s credit history.
Credit Mix: Variety of credit accounts such as credit cards, personal loan accounts, installment loans, and mortgage loans.
Recent Credit Activity: Number of recently opened credit accounts and recent credit inquiries.
Monitor your credit scores and overall health using Bajaj Finserv Credit Pass. Enhance your loan eligibility and secure favorable interest rates today.
It is worth mentioning that missing even a single payment can significantly damage your credit score. To avoid this mistake, most individuals set up reminders or automatic payments. Let us check out some other common mistakes that you must avoid to maintain a healthy credit score:
High credit utilization (using a large portion of your available credit limit) usually lowers your score. Hence, always aim to keep your usage below 30% of your total credit limit.
By closing old credit accounts, you end up shortening your credit history. This negatively impacts your score. Hence, it is always better to keep them open.
Failing to check and correct errors in your credit report results in a lower score. You can avoid this mistake by opting for the Bajaj Finserv Credit Pass, as all subscribers regularly receive accurate and error-free credit health reports.
Be aware that accurate information on your PAN (Permanent Account Number) card is crucial. That is because discrepancies usually lead to issues with your credit report and score. Furthermore, most lenders verify your PAN card details during the loan approval process. Accurate information usually speeds up this process and reduces the chances of rejection. Hence, in cases of mismatches, you need to make PAN card corrections. Let’s check out how you can make these corrections online through the NSDL (Protean) portal:
After successfully submitting the form, you will receive a 15-digit acknowledgement number. Use this number to track the status of your PAN correction application on the NSDL website.
Alternatively, you can also follow an offline process for PAN card correction using a PAN correction form. Let’s see the steps involved:
After submission, you will receive an acknowledgement slip. This process ensures your PAN card information is updated and accurate.
To get the Bajaj Finserv Credit Pass subscription, you can follow these simple steps:
Now, you can access your personalized dashboard. Using it, you can check your latest credit score and view your credit health report.
Maintaining a good credit score is essential for securing loans with favorable terms. Your credit score reflects your creditworthiness and is provided by agencies like CIBIL (CIBIL’s full form is Credit Information Bureau (India) Limited). To help you monitor and improve your credit score, Bajaj Finserv, a leading financial service provider, offers a unique Credit Pass subscription. This service provides access to a personalized dashboard, credit health reports, and modern predictive tools like the credit score simulator and EMI calculator. Using the Credit Pass, you can better manage your credit health and substantially enhance your loan eligibility.
Furthermore, accurate information on your PAN card is crucial, as discrepancies can negatively impact your credit score. You can easily make PAN card corrections through the NSDL portal by following a few simple steps mentioned above.
*Terms and conditions apply.
(This article is part of IndiaDotCom Pvt Lt’s sponsored feature, a paid publication programme. IDPL claims no editorial involvement and assumes no responsibility or liability for any errors or omissions in the content of the article.)