CIBIL score is a 3-digit number ranging between 300 and 900. It measures the borrowers’ creditworthiness. CIBIL score calculation is influenced by the CIBIL report (maintained by TransUnion CIBIL), which contains employment, loan account, contact, and personal information.
If you are opting for a loan, your lender will check your CIBIL report before approving your loan. This will help them understand your loan repayment ability. And, your loan approval will depend on this score. Read on to know about the factors that affect CIBIL score and how to check your CIBIL score online.
You can easily know your CIBIL score through the following procedures:
After making the payment, you will receive your CIBIL score and report via email.
You will get your CIBIL report and score in your mailbox after paying for the same.
Apart from the above-mentioned methods, you can also check your CIBIL score online on websites that provide credit reports for free.
Visit such an online platform, and follow these steps:
After you press the submit button, you will get your credit report for free.
In the case of unsecured loans, a CIBIL score of 750 or higher is considered good. Borrowers with decent scores are offered more attractive interest rates on loans and experience a swift approval procedure. A score ranging from 700 to 900 is termed good.
Go through the chart below before you check your free CIBIL score online.
|CIBIL Score||Approval Probability||Creditworthiness|
|650-699||Possible||Fair or satisfactory|
|600-649||Difficult||Doubtful and murky|
|Less than 600||Low||Urgent action required|
The following are the primary parameters that determine your online CIBIL score:
Every time you are applying for a loan, your CIBIL report records it. Keep in mind that making multiple credit inquiries frequently will harm this credit score. Under such a case, CIBIL perceives you to be a credit-hungry person who cannot fulfill financial obligations without borrowing.
Besides, each disapproval will impact the score. That’s because the lenders you sought a loan from considered you to be financially incapable of repaying the amount. So, you must be confident about meeting the eligibility terms before applying for financial assistance.
An individual’s existing debt accounts for 30% of their CIBIL score. The same gets reflected in the credit report. The loan amount sanctioned to you and the sum you have used from it will be a determining factor. Exhausting a credit card’s limit every month or excessive credit usage relative to your income will negatively impact your CIBIL score.
The form of credit you have taken contributes 10% to your score. Not using any credit or availing only one kind of credit will not help your credit score. You need to maintain a wise credit mix to improve your credit score. For instance, you can opt for both unsecured and secured loans. Additionally, the loan repayment duration has a contribution of 15% towards your credit score.
Your past repayment record accounts for 35% of your CIBIL score. That’s why defaulting on loan repayment and delaying EMI payments may severely impact your credit score.
These 4 factors influence your CIBIL score. But what is a good CIBIL score? Scroll down to find out.
If you are interested to apply for a loan in the future, you must keep tracking your CIBIL score from time to time and make sure it is up to the mark. This will help you to trace minor errors as well. Fixing and reporting such mistakes will increase your score. After all, a free CIBIL score calculator is just a few clicks away!
Ans: Here are some ready tips to improve your CIBIL score:
• Be a cautious borrower and plan your repayment wisely.
• Manage loans by consolidating your debt (when required).
• Pay your credit card bills and EMIs on time.
• Don’t avail excessive debt.
• Avoid co-signing a debt unless you are certain of not requiring a loan in the near future.
Ans: Follow the simple tips below to maintain a decent credit score:
• Select longer repayment periods carefully and try to make part-prepayments if possible.
• Limit the usage of your credit cards and set payments alarms.
• Create an excellent track record with timely installment payments.
Ans: If you check your own CIBIL report, it is perceived as a ‘soft inquiry’ and doesn’t hamper your credit score.
That said, if a credit card issuer or a lender checks your CIBIL report, it is considered as a ‘hard inquiry’. Your CIBIL report records these hard inquiries under the inquiry section. Multiple hard inquiries may hurt your credit score.
Ans: The full form of CIBIL is Credit Information Bureau India Limited. It is an entity that keeps and manages credit reports of various individuals, firms and companies, in accordance with which the lenders disburse loans.
Ans: An ideal CIBIL credit score for availing a personal loan is 750+. The banks and NBFCs may offer you more competitive interest rates and A higher loan amount if you have a decent credit score.
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