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What is Credit Score?

A credit score can be explained as a three-digit number that indicates a person's creditworthiness. It determines whether or not you will be able to pay your credit bills after taking a loan.

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What is CIBIL?

In order to understand what is CIBIL score is, you need to keep track of your credit history and your past repayment records. 

Depending on your credit history, credit reports, and overall rating, a three-digit number shows up that determines your capabilities as a potential borrower.

Whether you made your payments on time or not, whether your lenders sent out multiple Enquiry requests to the credit card agencies or not affect your CIBIL score immensely.

Ensure that your credit history is always good in order to come across as a good potential borrower when you apply for loans.

And irregularity in making repayments and late payments show your incompetence as a borrower who fails to manage their finances well. Therefore, to understand what is CIBIL score is and how it can affect your position as a borrower, analyse your credit history well.

Additional Reading: What is Transunion cibil?

What is a good credit score?

If you are wondering what is a good credit score, make sure you check out the current rates of the market to understand if you have a decent credit score to apply for loans.

If your credit score range is between 750 - 900, it is the best score you can have to come across as a good potential borrower of loans. You can easily take out loans from banks without any hassle with a credit score above 800 and above. For a credit score of 700 to 749, chances are you will be examined well before you get a loan.

Steps to check CIBIL score

By now, you must have understood what is CIBIL and how your credit score gets affected by your credit history. So, let's move on to understand the steps you can take to check your current credit score. This will tell you if or not you are eligible to apply for loans. 

There are a few very simple steps that you need to take in order to check your current credit score, such as:

  • Go to your bank's official website in order to check your CIBIL report.
  • First, enter your personal details along with your PAN card number, your monthly salary, your pin code, date of birth, and other details.
  • After that, you'll be asked to verify your identity by confirming your mobile number and email ID.
  • You will receive an OTP that you'll have to put there in order to confirm your identity.
  • After selecting this information correctly, your CIBIL report will show up on the screen. Most banks also offer to check some of the best loans offers that you can get with your credit score. Most banks also offer to check some of the best loans offers that you can get with your credit score.

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What is a Good and Bad CIBIL Score?

If you do not have a decent credit score while applying for loans, you will not get favourable credit terms in the long run. Everyone's financial situation is different. Different lenders also have different guidelines for granting credit that can affect your credit plan.

If you are wondering whether your current credit score is decent enough to apply for the loans you want, check out the chart to make your decision.

Credit ScoreCreditworthinessApproval Chances
750-900excellentexcellent
700-750Very goodVery high
650-700fairgood
600-650doubtfulConsiderably difficult
Less than 600Urgent actions requiredlow

If you have a credit score between 750 to 900, chances are you will end up being approved for the loan to apply for. Your creditworthiness remains to be on the higher side, and lenders will always pray for you over other customers who will have a credit score between 600 to 700.

If you want to understand what is a good credit score, it can be anything between 750 to 900. When you have a credit score close to 900, you will be able to take out any kind of loan you want. 

Additional Reading: How to Check CIBIL Defaulters List?

Importance of CIBIL score

Along with understanding what is CIBIL score, it is also extremely important to understand why your credit score is important will make you conscious about why you should work on improving your credit score before applying for a loan.

Your CIBIL score is important because it determines your potentiality as to whether or not you are eligible to apply for a loan that you want.

When you have a good credit score, see between 750- 900, you will more likely receive good credit terms from your lender when you take out a loan.

Different lenders have different terms and conditions when they grant you a loan. It is mostly based on your income and your past repayment history. When you have a decent CIBIL score, chances are most lenders will agree to approve your loan. On the other hand, with a poor credit score of around 600 to 650, you will end up losing many opportunities.

With a good credit score, you are more likely to get additional benefits after taking a loan. Low-interest rates and better payment terms or applied compared to when you have a credit score less than 700.

Additional Reading: What is cibil grievance?

What is a CIBIL Report?

Your CIBIL report is the credit report you receive when you check your current credit score.

After putting all the necessary information on the bank’s official page, you receive a credit report that tells you your eligibility for applying for loans. If you are wondering what is a credit rating and how to analyse yours, make sure you understand your credit history well.

Your CIBIL report will be examined by the lenders when you apply for loans. It will help them understand whether or not you are a compatible customer who makes their repayments on time, have no history of missing out on deadlines, and have an overall good credit image.

Based on these factors, the final terms and conditions will be finalised by the lender when they grant your loan.

Additional Reading: What is cibil dispute?

Tips to Improve CIBIL Score

When you understand what is CIBIL score is and how important it is to determine whether or not you are eligible for taking out loans, it is also important to understand what the methods are that you can take to improve your current credit score.

Repay your credit dues, EMIs and bills properly if you want to improve your CIBIL score fast. Those who have an outstanding credit score of 750- 900 make sure they pay their credit bills on time.

Making late payments have a huge impact on your credit score. Even one single late payment can affect your credit score a lot. Lenders often send out Enquiry requests to customers who make late payments. It can have a long-lasting effect on your credit score that will be later examined by your potential lender in the future.

Make sure you do not spend over 30% of your credit limit on a monthly basis. Over utilisation of your credit limit can exhaust your credit score immensely.

Several minor and major errors may take place from time to time while calculating your credit history. Make sure you keep track of your credit history two understand if it is accurate or not. It will help you avoid all sorts of errors and inconveniences in the future.

Do not keep applying for multiple credit cards constantly. Maintain a minimum gap before you apply for your next credit card to ensure your credit history remains good.

These are some of the key methods that you need to keep in mind if you intend to improve your credit score before applying for a loan.

Additional Reading: How to calculate credit score?

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What is credit score?

✅How to maintain a good Credit score?

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If you are wondering what is a good credit score and how you can maintain it, the major step that you need to take is to make your repayments regularly on monthly basis. Do not make late payments if you want to maintain a decent credit score between 750- 900.

Limiting your expenses and keeping them within 30% of your credit limit will also help you maintain a decent CIBIL score.

✅What are the factors that affect the CIBIL score?

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The major factor that affects your credit score is whether or not you pay your EMIs, bills, and other credit dues in time.

Whether your lenders have reached out to credit agencies for late payments, can have a huge impact on your credit score.

If you always keep on applying for different credit cards from different companies, it can also impact your credit score significantly.

✅What is CIBIL score for loan?

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Your CIBIL score can be explained as the three-digit number that is calculated based on your payment history, credit background, and your income. It will determine whether or not you are eligible to take out a loan from any lender. To understand what is CIBIL, it is extremely important to understand what a credit rating/ credit report is.

✅Can I check my CIBIL Score for free?

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Go to CIBIL company’s official page to check your credit score for free. You can also get a customised plan to improve your credit score by paying a certain amount if you want.

✅What is the full form of CIBIL?

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CIBIL full form is — Credit Information Bureau India Limited. It is a credit information company that can give you all credit-related reports when you need them.

✅What is NH in CIBIL Score?

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NH in CIBIL score indicates that the customer has no relevant track record or repayment credit history.

✅Is credit score different from CIBIL Score?

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When your credit score is calculated by the CIBIL company, it is known as your CIBIL score.

Credit scores can be calculated by any of the four credit bureaus In the country. However, the CIBIL score can only be given by the CIBIL company.

✅Is it safe to check CIBIL Score online?

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Yes, it is perfectly safe to check your CIBIL score online from the official page of the CIBIL company.