CIBIL score is calculated on a number of factors, especially on your payment history. Your repayment track record contributes to over 35% of weightage while computing our credit score. In addition, your CIBIL score is also calculated based on:
• Your total available credit balance.
• Balance between your secured and unsecured loans.
• Number of loans and credit cards you have.
• Credit utilization.
• Plus a whole host of other factors
A credit scoring algorithm is then used by the bureaus like CIBIL to calculate your CIBIL score. Your CIBIL score not only helps lenders assess your loan eligibility, it also helps them understand if you are worthy you are of credit. The higher your credit score, the higher are your chances to get your loan approved. So it’s always advisable to check your CIBIL score before you
What is a Good CIBIL score?
A good CIBIL score ranges from 750-900. If you have a score of 750 and above, banks and other NBFC’s consider you to be credit healthy. But if you have a score less than 750, banks feel it is as a risk to provide you a loan or credit card. Banks and other NBFC’s are comfortable with approving loans to customers who have a score of 750 and above.
There are 3 credit bureaus in India which are authorized by RBI. The 3 credit bureaus are CIBIL, Equifax and Experian. You can choose to get your credit score online from the websites of any of the bureaus. There are also a few reputed credit management companies which provide help you understand your credit health and provide online analysis.
What are the benefits of having a good CIBIL score?
With a good CIBIL score, banks provide you with a lot of benefits, such as low interest rate, higher loan amount, quicker loan approval process and higher repayment period. To enjoy all these benefits, the eligibility criteria is having a CIBIL score of 750 and above. With a good CIBIL score you can enjoy all the benefits. In case you have a low CIBIL score, all you have to is to improve your CIBIL score by following a few steps.
• Making payments for your loan dues on time
• Maintaining a balance between secured and unsecured loans.
• Reducing the number of loans you borrow in a particular year.
• Ensuring you have a balance between you income and you debt.
These are a few easy steps which help you to improve you CIBIL score. This will help you to improve your CIBIL history. The better your credit history, the better your CIBIL score will be.
What is a Credit Score and a Credit Information Report (CIR)?
A Credit Score or the CIBIL Score is a three-digit numeric summary of your credit history. The score is derived using the credit history found in the CIR. A CIR is an individual’s credit payment history across loan types and credit institutions over a period of time. A CIR does not contain details of your savings, investments or fixed deposits.
How do I check details of my account number and member name mentioned in my CIR?
To check account number or member details you can purchase your CIBIL Score and CIR. This report will contain complete details of your credit history across various lenders and products, enabling you to check all the aforesaid information.