planning to take a loan or a credit card? Then you need to know your CIBIL score. Think of the CIBIL score as a kind of report of your finances that allows banks and lenders to assess whether or not you can get a loan.
🎬📺 Free Movies and Free TV Shows! 🎭🎬
What is a CIBIL score?
Founded in August 2000, the Credit Information Bureau (India) Limited (CIBIL) is the premier credit information company in India. A CIBIL score is one of the most important factors that almost every financial institution checks when they receive credit applications from individuals.
Since CIBIL has ties to almost every bank, they collect and collect information about individual and corporate account holders to measure their creditworthiness. A high CIBIL score means not only excellent financial discipline, but also integrity.
When applying for a loan or credit card, the banks check your recent CIBIL score (last six months). In general, a score above 700 is considered excellent, although this may vary from bank to bank.
Why is the CIBIL score important?
Once an applicant has completed the application form to get a loan or credit card, the lender will first and foremost check the CIBIL score to determine whether or not the applicant is eligible for the loan/credit card.
If the CIBIL score is low, the lender may not even consider the application further and reject it. If the CIBIL score is high, the lender will examine the application and consider other details to determine if the applicant is creditworthy.
What helps the CIBIL score is acting as a sieve through which only those who qualify can move forward. While the decision to borrow is solely dependent on the lender and CIBIL does not in any way decide whether the loan/credit card should be sanctioned or not, it assists the lender in making that decision.
What is a good CIBIL score?
The CIBIL score is a three-digit numerical summary of your credit history. The report will range from 300 to 900 depending on how you did it. The closer your score is to 900, the more likely your loan application will be approved.
Between 850 to 900 – This is an excellent score and shows that you have never defaulted on a payment.
Between 750 to 850 – A majority of sanctioned loans are for loans that fall into this category. Scores above 800 are considered high and getting a loan with this score is easy.
Between 700 to 750 – This is a good score for secured loans, but for unsecured loans, the banks may want to impose a slightly higher rate.
Between 500 and 700 – This score can make it difficult for a person to obtain personal loans. This indicates that you have experienced delays or defaults in the recent past.
Between 300 to 500 – This is considered a bad score and getting a loan will be very difficult. This also means that the individual needs to work on restoring their credit history.
Some of the factors that can negatively affect your score include:
- Late Payment of EMIs
- Default on EMI Payment
- A high percentage of unsecured loans such as personal loans
- A high level of credit card spending
- Guaranteeing a loan that the borrower defaults on will affect your CIBIL score
How can you view your CIBIL score online?
- Log in to the official website here
- In the top left corner, click on the tab that says “Personal”
- Click – ‘Buy yours now’
- You are referred to this page, where you will need to fill in your details, including name, date of birth, a password to access the site and proof of ID
- Once you sign up, an OTP will be sent to your registered mobile number
- Upon entering the OTP you will be taken to a dashboard where your CIBIL score will be displayed
- You have two options: either pay a certain amount and get a detailed score report, or opt for the free report
It is always good to check your CIBIL score before applying for a credit card or loan.
(Edited by Saiqua Sultan)
Do you like this story? Or do you have something to share?
Write to us: firstname.lastname@example.org
Contact us facebook and Twitter.
🎬📺 Free Movies and Free TV Shows! 🎭🎬