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All About CIBIL Score

What is the CIBIL Score?

It is an 3-digit numeric summary of your credit history, derives by using details found in the Accounts & Enquiries section of your CIBIL report, including your loan accounts or credit cards & their payment status, as well as outstanding amounts day past due. Its range from 300 to 900 the closer your score is near 900, the better your credit rating is. 

What is Good CIBIL Score?

The range of CIBIL Score is 300 to 900. A good CIBIL Score lies between 720- 900. The good score yields multiple benefits like quick approval of loan, lower interest rates & a higher loan amount.


How the CIBIL Score is calculated?

There are four key factors that impacts your CIBIL Score

1. Payment history

Making late payments or defaulting on your EMI's has a negative impact on your score.

2. Credit Mix

Having a balance mix between secured loan and unsecured loans is likely to have a positive impact.

3. Multiple enquires

Too many loan enquires may have a negative impact on your score as it indicates that your loan burden may go up in the future.

4. High credit utilization

A high credit utilization limit indicates a rising debt burden over time & may negatively impact your score.

How can I get good Credit Score?

Your CIBIL score is based on your credit history & past payments. It subsequently impacts your future access to credit. Below are the tips that can help you to achieve good credit score

- Always pay your dues on time. Late payment of dues will hamper your credit score.

- Do not use too much credit, as it will show that you are in financial trouble hence you are taking more loan.

- Maintain healthy credit mix of secured- like home loan & vehicle loan and Unsecured loan like personal loan & credit cards- too many unsecured loans may be viewed negatively

- There should be considerable gap between two loan. This shows that your are not constantly looking out for loan.

- Review your credit history frequently throughout the year. Monitor your CIBIL score & report regularly to avoid unpleasant surprise (like a rejected loan application)

How to start?

My strategy was simple even though I had cash, I started purchasing things on emi's. I purchased 2 mobile phone (gap of 6 month's) through Bajaj Finance & paid all emi's on time. After 7-8 months I purchased home appliance on emi. Now my score is good as I pay all emi's on time. You can also start by small things so when time will come to buy big thing you will get loan easily as your score is good.

How to check your CIBIL Score?

There are various site available online to verify your cibil score. Some site show it for free some site demand for some nominal amount to show your score. I always use Bajaj Finserv website to check my score. You can check it through your financer website. Below are the various options but check the site review before entering your personal details.

1. Bank Bazar- https://www.bankbazaar.com/cibil/cibil-credit-score.html

2. CIBIL- https://www.cibil.com/freecibilscore

3. Bajaj Finserv- https://www.bajajfinserv.in/check-free-cibil-score

4. Cred Club- https://cred.club/check-your-credit-score

5. Paisa Bazaar- https://www.paisabazaar.com/cibil-credit-report/

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