Before offer you loan or credit card, Bank should know about your financial history and credit worthiness. CIBIL helps banks to measure the individual’s capability and probability of repaying the loan. CIBIL (Credit Information Bureau (India) Limited) is Credit Information Company (CIC) that provides credit related services to its members nationwide. CIBIL has been collecting and maintaining credit information of Indian residents provided by banks and NBFCs. The credit bureau on the basis of the credit information of an individual, generates their credit report and CIBIL Score. “No Due” Certificate from your loan institutions is important on maintaining the healthy CIBIL score.
On the basis of the credit report provided by CIBIL, Loan and credit card providers analyze whether the applicant is capable of repaying one’s loan on time or not. The CIBIL Score is a number that indicates an individual’s credit worthiness. It impacts the individual’s capability to borrow and take new credit from lenders. Usually, banks or lenders use this credit score to evaluate the probability of whether an individual repay his debts or not.
HOW CREDIT SCORE IS CALCULATED?
CIBIL Score calculated based on complex algorithm which consider credit card usage, repayment of credit card payment on time, number of unsecured loans(Personal Loan), repayment history of personal loan, number of credit cards, number of personal loan, home loan and vehicle loan. Reports generated based on these factors and give you score on your transaction credibility.
KNOW YOUR CIBIL SCORE:
You can get CIBIL score free by bankbazeer or visit CIBIL’s official website. CIBIL score ranging from 300 to 900. The credit score reflects how well or how poorly a person has dealt with loans or credit cards in the past. The higher your CIBIL score, the better your chances of getting a loan or credit card application approved when you apply for it.
IMPROVING CIBIL SCORE:
Proper usage of credit cards and repayment credit card helps you to improve the CIBIL Score.
- Never utilize more than 50 percent of your credit cards limit.
- Do not apply for multiple credit cards and personal loans.
- Never miss your Credit card bills or loan EMI. Pay them before due date.
- Keep all your “No Due Certificate” from your banker after closing the cards accounts or loan.
- Bouncing cheque would heavily impact your CIBIL Score. Be careful and follow while issuing cheque.
- Apply new loans or credit cards after one year gap from last applied
Keep all your “No Due Certificate” from your banker after closing the cards accounts or loan.
LOAN WITH LOWEST INTEREST BY HIGH CIBIL SCORE :
Better Credit Score helps you get loans at much better rates from lenders/Bank. Credit score above 750 considered good and quick approval for loan and credit card. Credit score with 750 – 900 range helps borrowers to get loans easily from banks. Better score on the credit score gives leverage when negotiating interest rates. So make effort to maintain good credit score to get loan approval in future.
Bad Score : 300 -599
Good Score : 600 – 799
Great Score : 800 -900
The factors which negatively impact the score:
- Missing Payments on the existing loans.
- Less proportion of Unsecured loans like PL, Credit card etc.
- High utilization of the credit limits (i.e. Your consistently using above say 80 percent of your Credit Card limit ).
- More number of credit cards and loans.
- Bouncing cheque.
- Default as a Loan Guarantor.
CIBIL RATING / CIBIL SCORE REFLECTS THE CREDIT WORTHINESS OF AN INDIVIDUAL.
IMPACT OF CIBIL SCORE:
Your credit card and personal loan application would be rejected if CIBIL score is low. It would block your home dream by affecting approval of home loan.
CIBIL SCORE DECIDE WHETHER YOU SHOULD BE SANCTIONED A LOAN / CREDIT CARD OR NOT.
CHECK CIBIL SCORE FREE – HOW TO GET CIBIL SCORE :
To get your credit report for free by visit CIBIL official website and click on the link for free credit report. Create your CIBIL account. Fill out a form with below details Date of birth Gender Postal Address Identity Proof Number (PAN, Aadhaar, etc.). Accept terms and conditions Once you accept terms and conditions, CIBIL will show your Credit Information Report (CIR) with CIBIL Score.
1). Goto CIBIL.com
2). Register in CIBIL with your PAN card number, DOB and Mobile.
3). After register, login to the website.
4). Click free CIBIL report.
5). CIBIL would display all your existing loans and credit card information.
Happy improving CIBIL Score 🙂
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