CIBIL score check: CIBIL score means credit score which basically tell banks about repaying your loans. It also becomes a measure that tells about paying your payments on time. So, based on your CIBIL score or credit rating, it is determined about paying your loans on time.
The full form of CIBIL is Credit Information Bureau India Limited. This score maintains your credit score and calculator. The cibil score also determines about your control on your financial condition. In this document, you will go through about Cibil Score in depth.
What is Cibil Score?
Cibil Score, also known as Credit
Information Bureau (India) Limited Score, is a numerical representation of an
individual’s creditworthiness.
This score is based on an
individual’s credit history, which is maintained by credit bureaus like CIBIL,
Equifax, Experian, and CRIF High Mark.
The score ranges from 300 to 900
points, and a higher score indicates a better creditworthiness of an
individual.
Lenders, banks and financial
institutions use this score to determine the risk involved in giving out loans
or credit, and to decide on the terms and interest rates for the same.
What is a good CIBIL Score?
CIBIL Score is basically a 3 digit
numeric number which is also known as Credit Score. This number ranges from 300
to 900. Take a look below if your score is healthy:
If your Cibil Score comes out between
300 to 500, it falls under poor category
If your Cibil Score comes out between
550 to 650, it falls under average category
If your Cibil Score comes out between
650 to 750, it falls under good category
A Cibil Score of 750 to 900 falls
under the category of Excellent
This score remains valid at all times
which helps you get loans at a faster and cheaper rates
If your CIBIL score is bad, you will
face issues to acquire a loan
How to calculate Cibil Score?
CIBIL score is calculated on your
credit history which is prepared on the basis of a person's spending history in
the last 36 months. If you wish to calculate your Cibil Score, please adhere to
the following points:
Credit Mix:
It's crucial for you to maintain a balance between secured loans and unsecured
loans to make a good impact on it
Payment History:
Late payments always impacts negatively on your CIBIL score. To avoid this,
please make a habit of making your payments before the due date
High Credit Utilization: In case, you exceed the utilization of the credit card
limit, bank won't be able to give you loan in future. It's better if you
maintain 30 to 40% of your credit limit
Multiple Inquiries: If you tend to make so many inquiries at the same time and are also
have borrowed in the recent past, it will impact your score negatively
Debt to Income Ratio: In ideal cases, you need to maintain your debt to less than 50% of your
income on your mortgage and credit card bills. If you maintain a high debt ratio,
it will lower down your credit score
How to maintain a good CIBIL score?
Pay your bills on time: Late payments have a negative impact on your credit score.
Paying bills on time will show creditors that you are a responsible borrower.
Keep your credit utilization low: Credit utilization refers to the amount of credit you are
using compared to the credit limit. Keeping your credit utilization low will
show creditors that you are managing your credit well.
Limit your credit applications: Each time you apply for credit, it results in a hard
inquiry on your credit report which can negatively affect your credit score.
Monitor your credit report: Keep an eye on your credit report for any inaccuracies and
errors. Dispute any inaccuracies to ensure that your credit score is accurate.
Use a mix of credit: Having a mix of credit, such as a credit card and a loan, shows that
you can handle different types of credit and can positively impact your credit
score.
Maintain a long credit history: Creditors prefer borrowers with a long credit history
because it shows that the borrower has a good long-term financial track record.
Importance of Cibil Score for getting Personal Loan and Credit Card
Your CIBIL score will always pay a
crucial role in availing loan. It's because whenever you try to apply for a
loan, the lender will simply check your CIBIL score to know about your credit
history along with your creditworthiness.
So, if your credit score is positive,
it will help you get a loan quickly. But if it is low, you will face difficulty
in acquiring a loan.
How to check cibil score online?
First, visit the official website of
the official website of Cibil
Next, click on the 'Get Your CIBIL
Score' option after you reach to the home page
Enter your ID proof information
Enter details of your credit card to
calculate your CIBIL score
If you need more than one report, you
need to make many subscriptions
If you wish to grab paid membership
information, you need to authenticate yourself
An OTP will be generated that will
come to your mobile number you have entered
Click 'Submit' option
You will now receive your CIBIL score
along with credit report
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