Help and Advice

5 Things You Should Know About A CIBIL Score

Knowledge Is Power, And CIBIL Scores Points! 

CIBIL score – that three-digit figure which reflects your creditworthiness as well as impacts your loan eligibility! So can you afford to stay ignorant about it? Of course you cannot. That’s why we bring you the 5 most important things about CIBIL score, right here –

  • A good CIBIL score is the pre-requisite for loan sanctioning – In case you are planning to buy your dream home or a luxury car, taking a loan for the same is inevitable. But would that loan be sanctioned by the bank? The answer to this question depends on your CIBIL score. CIBIL score range between 300 and 900 and reflect your credit performance based on your credit history. So the closer you are to 900, more will be your chances of getting loan sanctioned without any hassle.
  • CIBIL score builds the lenders’ confidence in your creditworthiness – Well, forget the loan part; CIBIL scores speak a lot more about how responsible and conscious you are about your loans, repayments, EMIs and credit card payments.  A good CIBIL score would build the lender’s confidence in your credit management abilities while a low CIBIL score (less than 600) would definitely jeopardize your creditworthiness.
  • So many things impact your CIBIL score – The CIBIL scores you see in your CIBIL report aren’t derived out of the vacuum; it is your credit history and day-to-day credit management behavior that impacts this score. Let us tell you a few things that are considered while calculating your CIBIL score. Like how much credit is available to you through all the credit cards and bank accounts; how much credit is being used by you; how timely are your credit card repayments; how many accounts are being paid on time or late by your; how many types of loans, secured or unsecured, are taken by you and whether you are paying back your EMIs and Interest on time. All these factors determine your CIBIL score.
  • Your CIBIL report is very important – It is through a CIBIL report that you can check your CIBIL scores and even see the areas where you have scope of improving the score. That’s why it is recommended to check your CIBIL report at least twice a year. And with technological advancements, CIBIL reports can be availed online as well.
  • Get your CIBIL score calculated for FREE – At CreditSmart, you have the facility to get an estimate of your CIBIL score free of cost! The CIBIL report so generated and the CIBIL score reflected in this report will be based on your past repayment record of bank loans (personal, auto or home loans) and credit card repayment history. The CIBIL scores calculated at CreditSmart follow the most scientific and objective algorithm. Moreover, not a single rupee is charged for this service!

Calculate Your Score Now

Well, the point is there is no good or bad CIBIL score; yet you may fail to get a loan in case you pay not enough attention to this score. Better late than being sorry; calculate your CIBIL score now and see how have you fared in your credit history.

About the author

Preeti Bala

Preeti Bala

Preeti Bala is a financial writer from India, with a background in technology as well. With years of expertise in writing, she is a versatile personality and eager to learn always. Apart from this professional stuff she has great interest in traveling, games, and the outdoors.

Leave a Comment