Frequently Asked Questions

A credit score is a three-digit number (300–900) that summarises your credit history and signals your creditworthiness to lenders. It is calculated by Credit Information Companies (CIBIL, Equifax, Experian, CRIF) based on your repayment history, credit utilisation, length of credit history, types of credit, and recent enquiries. A score above 750 qualifies you for the best rates and highest loan amounts. A score below 600 leads to rejection at most mainstream lenders. Your credit score is the single most important factor in determining whether you get a loan, how much, and at what interest rate.

The five key factors (approximate weights): Payment History (35%) — the most impactful factor; even one missed EMI can drop your score by 50–100 points. Credit Utilisation (30%) — how much of your credit card limit you are using; keep this below 30%. Length of Credit History (15%) — older accounts are better; do not close your oldest credit card. Credit Mix (10%) — having a healthy variety (home loan, credit card, personal loan) is better than only one type. New Enquiries (10%) — each loan application generates a hard enquiry; multiple applications in a short period hurt your score.

You are entitled to one free credit report per year from each of India's four RBI-licensed credit bureaus: CIBIL (cibil.com), Equifax (equifax.co.in), Experian (experian.in), and CRIF High Mark (crifhighmark.com). Additionally, several apps and websites (including bank mobile apps, Paytm, PhonePe, BankBazaar) offer free monthly score checks — these use soft enquiries and do not affect your score. Checking your own score is always a soft enquiry and never hurts your credit.

NH (No History) or NA (Not Applicable) means you have no credit history on record — you have never had a credit card, personal loan, home loan, or any other credit product. Bureaus cannot calculate a score without data. This is not the same as a bad score — it simply means you are a 'thin-file' borrower. Lenders respond differently: some decline thin-file applicants entirely, some offer smaller loans with higher interest rates. The solution is to start building credit history: a secured credit card (against a fixed deposit) or a small personal loan repaid on time are the fastest ways to establish a positive track record.

The fastest actions to improve your score: (1) Pay all EMIs and credit card bills on time — every month, without exception. This is 35% of your score. (2) Reduce credit card utilisation below 30% by paying down balances or requesting a limit increase without spending more. (3) Check your credit report for errors (wrong personal details, loans you did not take, accounts marked 'Settled' when you paid in full) and dispute them online at cibil.com — CIBIL must resolve disputes within 30 days. (4) Do not apply for new credit during your recovery period — each application is a hard enquiry. Consistent positive behaviour can improve your score by 40–80 points within 90 days.

Yes — if you repay on time. Crestmont Capital reports every loan (disbursement, monthly payment status, and closure) to all four credit bureaus. A personal loan repaid on time contributes positively to your payment history, adds to your credit mix, and establishes a track record. Borrowers who take a first personal loan and repay it without a default often see meaningful score improvements over 6–12 months. Conversely, late payments or defaults will harm your score. A loan is a tool — its impact depends entirely on how you manage it.

'Settled' means you negotiated a payment for less than the full outstanding amount with your lender — the lender agreed to close the account at a reduced amount. While it means the debt is resolved, 'Settled' is a strong negative marker that persists on your credit report for 7 years and signals financial distress to future lenders. 'Written Off' means the lender has given up on collecting the debt and has written it off as a loss — it is reported to bureaus as a default of the highest severity. Both statuses significantly reduce your loan eligibility. If you have a settled loan, document the settlement agreement and try to get the lender to update it to 'Closed' if the full amount was eventually paid.

Credit bureaus receive data from member institutions (banks, NBFCs, credit card companies) monthly. Most lenders report on a 30-day cycle — your credit report is typically updated within 30–45 days of any credit event (payment, new loan, closure). The exact update date depends on when your lender reports to the bureau. After loan closure at Crestmont Capital, we report to all four bureaus within 30 days. If your report does not reflect a closure after 45 days, raise a complaint with us and we will investigate.

Step 1: Download your credit report from the relevant bureau (CIBIL, Equifax, Experian, or CRIF) and identify the specific error. Step 2: Raise a dispute online at the bureau's website — CIBIL's dispute portal is at cibil.com/consumer-disputes. Step 3: Simultaneously, contact the lender that reported the incorrect information (for a Crestmont Capital loan, email service@crestmontcapital.in with your loan account number, the specific error, and supporting documents). Bureaus are required to investigate and resolve disputes within 30 days. If the lender confirms the error, they will instruct the bureau to update the record. Document every step of the dispute process.

Pre-closing a loan generally has a net positive effect on your credit profile in the medium term — it removes an active liability, improves your Debt-to-Income ratio, and the account is marked 'Closed' (positive). However, closing your only active loan account can cause a very minor short-term dip in your score because it reduces your 'credit mix' and the number of active accounts. This effect is small and temporary. If you have other active credit products (credit card, home loan), the impact is negligible. The financial saving from avoiding future interest almost always outweighs any marginal score impact.