What Is CIBIL Score? And How To Improve Your CIBIL Score?

CIBIL Score:
Cibil score or Credit score is more of a financial report card, which is calculated on the basis of your Repayment
and Bank statement history,
The Cibil score is graded in the number terms within the range of 300-900 where 300 being bad and 900 being
a positive sign of good financial stability, anywhere above 700 is considered for providing a loan and credit card.

To provide you any loan the lender checks your Cibil score and then, provides you the loan on the basis of your eligibility criteria,
likewise checking a Cibil score is very easy, There are a number of various websites where you can check your Cibil score for free,
all your need to do is enter your PAN card number and fill out a basic form then you can get your Cibil score in no time.

The Minimum Cibil score requirement for obtaining a loan should be above 700. Anywhere below 700 could be a worry.
However, While your Cibil cannot be changed within a day but certain major and minor changes in your financial
habits can help improve in making a significant difference compared to your earlier situation.

Factors Affecting Cibil:

Credit History:
More than 30 % of your Cibil score is being affected due to your past repayment history and payment due.
A good credit history automatically increases your chances of getting a loan at lesser interest rates.
If a person doesn’t have any kind of credit history are most certainly have of having a zero CIBIL score.
In this kind of situation, lenders consider other factors such as sources of income and employment stability to calculate
your estimated repayment capability.

Missing of Due Dates:
People usually end to forget to pay their EMI’s or other pending dues think that they can pay it after a week,
but this one week is taking into consideration according to the bank it is considered as laps or default in repayment which will
directly affect your Cibil score, so one should pay their pending bill due in advance.

Utilization of Credit:
Banks provide you a credit on the basis of your Cibil Score but although you repay it on time that doesn’t mean your Cibil score is safe,
your Cibil is calculated how often do you obtain the loan amount. Your credit ratio should not cross above 40%.
People who exide their credit limit frequently are known as Credit Hungry Borrowers, It is difficult to obtain loans for them in the future.

Multiple Credit Applications:
The main reason for the reduction of your CIBIL score is a frequent application for loans and credit cards.
So it is important to focus on repayment rather than applying for loans again and again.

Increasing Your Credit Card Limit Frequently:
It is a very thing if there is huge variation in your credit score frequently because it will not only lead to bad presentation to your
financial report but also creates a suspicion to the leader that will affect the process of applying for credit in the future.

How to Improve CIBIL Score?

There are various ways to improve your Cibil score few are as follows:

  • Pay all your credit card bills on or before the time limit
  • Make sure your EMI is successfully paid.
  • Decrease your credit utilization.
  • use only secured credit cards.
  • Check your credit report for errors and remove them.

How to Check Your CIBIL Score for free?

There is a various website that provides the facility wherein you can check your Cibil score for free few of them are mentioned below:

  • Credit Karma

  • Credit Sesame

  • WalletHub

  • Paisabazaar

  • Bajaj Finserv

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