What is CIBIL Score? Know About CIBIL Credit Score for Home Loan/Credit Cards

CIBIL Score

Looking for the answer to, what is CIBIL Score? Well, the Credit Information Bureau India Limited (CIBIL) Credit Score is a three digit number indicating your credit history, rating and report which helps in the approval of Home Loan/Credit Cards. Know more about the CIBIL Score India  in the below section of this page.

The CIBIL Score ranges from 300 to 900. The closer your score is to 900, the better your credit rating is. Credit files of about 600 million individuals and 32 million businesses has been maintained by Credit Information Bureau (India) Limited. CIBIL India is part of TransUnion, an American multinational group. Therefore, the credit scores in India are termed as CIBIL Transunion score.

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CIBIL Score

What is the significance of CIBIL Score?

Before applying for a loan or some other credit, arises the question, Are you eligible? At this point, your CIBIL Score comes in the picture.  It plays a crucial role in the approval of your loan application. Whenever an individual approaches a bank or a financial institution for a loan, first of all, the lender checks his/her CIBIL Credit score and report.

Person with a low CIBIL score has high chances of getting his/her loan application rejected. On the other hand, if the CIBIL Score is high, your application will be considered and financier will check other parameters in order to decide if you are credit-worthy.

It must be noted that CIBIL score as a first impression for the moneylender, the higher the score, the better are your chances of the loan being reviewed and approved. However, your score alone does not decide whether the loan/credit card should be sanctioned or not. It is solely dependent on the bank/lender. Typically, a score of 700 is considered good.

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Factors Affecting CIBIL Credit Score

Individuals must know that CIBIL Score is a numeric summary of credit history which is calculated based on some factors. We are providing some Factors That Can Affect CIBIL Score. Have a look…

Positive Factors Negative Factors
  • On time loan EMI payments.
  • Regular payment of credit card bills.
  • Avoiding over-leveraging.
  • Maintaining strong financial records.
  • Too many forms of credit (such as unsecured personal loans)
  • Proper utilization of approved credit limit.
  • Ensuring banks and other financial institutions
  • Requesting and maintaining a copy personally
  • Too many credit report enquiries
  • Cheque bounces/dishonours.
  • Irregular loan repayments.
  • Defaulting on credit card bills
  • Making late payments or consistent part payments.
  • Too much unsecured credit
  • Multiple applications for unsecured loan getting rejected.
  • Defaulting as a guarantor.
  • High utilization of approved credit limit
  • Errors in record by banks and other finance institutions.

 

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What is a Good CIBIL Score?

A CIBIL score can range from 300 to 900 with 300 being the bottom end and 900 being the best score possible. Here is what your score could mean.

0 or -1 Individuals having score of 0means they have no credit history created via a credit card or loans.
350 – 550 This score shows that you have been defaulting on payments and the chances of getting new loans/credit cards are negligible.
550 – 650 This CIBIL Score indicates that you pay your payments on regular basis andCan be trusted with new loans and cards. Your loan applications are also likely to be approved.
650 – 750 This score shows that you are at right path and able to reach the best CIBIL Score too.
750 – 900 It is Good CIBIL Score and shows that you are regular with your payments.

 

Benefits of Having a Good Credit Score

If you get successful in maintaining a good CIBIL credit score, then there are multiple benefits you can enjoy for ensuring smooth financial activities.

  • There will be more effective and speedier process of credit application’s processing
  • Credit cards are available at low interest
  • Maximum limit on credit cards can be availed
  • Higher probability to negotiate interest rates on loans
  • Endorsement of rented houses without any difficulties

How To Get Free CIBIL Score Online?

According to the norms decided by reserve bank of India, all the companies of credit information in India must provide the 1 fee credit report on request once in financial year. And the credit report will comprise of the credit scores of the individuals.

If you want to check CIBI credit scores online, then you can visit the official website and follow the option given for “get your free report” link to access your scores. So, through this way you can get to know How To Check CIBIL Score.

How to improve your CIBIL score?

Adopting some financial ethics/tricks such as repaying Credit Card bills on time, never missing a loan EMIs, never default on debts, using credit wisely, etc. which in turn will result in boosting up your Credit Score.

Hope, you are assured from the details of what is CIBIL Score? Know about CIBIL Credit Score, presented on this page given by customer-carenumber.com and if you still want to know more about it, visit to the Official Link.

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