Importance of Cibil Score

CIBIL score is an essential element that is taken into consideration by lenders prior to the time of granting you credit or loans. It's a numerical representation of the credit score as well as the way you pay.

What is an CIBIL score?
The CIBIL score can be described as a three-digit number that can range between 300-900. It is a measure of your capacity to pay back the loan amount. A perfect score ranges between 750 and 900. The score should be close to 9000 to gain access to credit-related products like credit cards and loans. In the event that you've earned a great score, it indicates that you've been an honest borrower.

This will help you: क्रेडिट स्कोर / सिबिल स्कोर को कैसे बढ़ाये ?

What do you think your CIBL score comprised of?
There are four major elements that determine your score:

Payment History

30%

Credit Exposure

25%

Credit Type and Duration

25%

Other Factors

20%

What are the factors that won't impact Your CIBIL score?
Your score is affected by numerous aspects, including credit history and payment history as well as other aspects. But, there are a few aspects that have no influence to your scores. Here's a list:

Verifying your credit score

• Savings Account
  
  Fixed Deposit
  
  Debit Card
  
  Income
  
  Overdraft
  
  Cheque bouncing
  
  Education
  

What is the significance of your CIBIL score so important?
Your score is a representation of your credit score. It informs lenders of your capability to repay the amount you borrowed.

Find out your Credit Status:

When you look up your credit score as well as your reports it will show you where you are and what areas you must be focusing on. Your CIBIL report provides a comprehensive overview of your current and previous credit transactions. Regularly reviewing your report assists in reporting and rectifying any errors that may have affected your score due to no cause of any of your own.

Makes you Eligible for Loans

Generallyspeaking, banks and lending platforms take an CIBIL score of 750 or above as the ideal. This is why it is crucial to establish credit history and attain an CIBIL score since it will make you more eligible to obtain credit with excellent conditions. If you do not have credit history and have no score, it is impossible for creditors to determine your creditworthiness.

What are the advantages of a high CIBIL score?
Lower interest rates for loans

• Card with higher rewards and benefits
  
  Pre-approved loans are available.
  
  Credit with a longer-term
  
  Rapider approval of credit applications
  
  Negotiation power
  
  Reduced rate on the processing of loan fees as well as other charges
  
  Credit card limit increases
  

Find out your CIBIL score to receive a Free:
In the beginning of 2017 in the beginning of 2017, The Reserve Bank of India (RBI) required all credit bureaus across India to offer a free credit report that is detailed and comprehensive every calendar year. Visit the website for CIBIL's official web page CIBIL to get your complimentary CIBIL scores and reports.

Read More: How Is Your CIBIL Score Calculated?