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Decoding Credit Score With Onescore - How to Navigate Your Credit Life

Understanding the power of your three digit credit score can open up avenues for better credit availability when you really need it. OneScore’s Chief Risk Officer, Devang Shah and Experian’s MD, Neeraj Dhawan offer insights on what is credit score and how to build a robust one, like a boss.

March 31, 2022 / 08:49 PM IST

At some point in our lives, we all avail credit… or try to. For some, their credit score can mean the difference between access to loans, insurance and credit cards, and having to go without.  Most Indians still don't understand what a credit score is, where to check it, why it is important, and how to improve it. To remedy this situation, OneScore has teamed up with to launch #ScoreDekhaKya, an exclusive educational campaign that consists of 4 insightful masterclasses.

In the first of these masterclasses, MoneyControl's Ruchiraa Sharma spoke with Devang Shah, Chief Risk Officer and Head of Decision Science, OneScore and Neeraj Dhawan, MD, Experian India.

What is a Credit Score?

This was a question that always bothered the founders of the OneScore App. As seasoned bankers, they could clearly see the gap in the market, and how this was impacting credit seekers, especially the youth and those who struggled with poor credit scores. The first thing the company addressed was the creation of a dead simple way to check one's credit score, for free - the OneScore App.

Neeraj Dhawan explains the credit score as a 3-digit number between 300-900, derived from each person's credit and payments history. According to Devang Shah, these include 3-4 main factors: the types of credit availed, how much of this credit you use, your repayment behaviour, and finally, how many credit inquiries have been made for your score (particularly if in a short duration of time).

Essentially, a credit score gives lenders insight into your likely behaviour around future payment obligations – the higher your credit score, the better your credit.

So How Do I Build A Strong Credit Score?

According to Devang Shah, this is a 3 step journey: One, check your credit score proactively and regularly, like a preventive health check up! Two, don't just check your score, but understand the workings of it, to plan your actions to improve it. And three, take action to improve your credit score. Neeraj Dhawan concurs, and also cautions against the possibility of someone else's credit showing up in your credit report - which must be corrected immediately.

How Hard Is It To Build/Maintain a Strong Credit Score?

According to both, it's not hard at all! Especially with modern tools like the OneScore App which provides you with a monthly credit report according to two different credit bureaus, shows you how your credit score is moving, and also gives you AI powered recommendations specific to your case.

To ace your credit score, we recommend you watch the full conversation between Ruchiraa, Devang and Neeraj here and visit the #ScoreDekhaKya website for more insights.

Moneycontrol journalists were not involved in the creation of the article.

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Tags: #Features
first published: Mar 31, 2022 08:49 pm
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