Checking your CIBIL score is important if you want to understand your credit health. Also called credit score, CIBIL score shows how well you have managed loans and payments with banks. It tells if you paid your dues on time or not. Based on this, your credit rating is decided. A bad score means you delayed or missed payments, which can cause problems for you. CIBIL stands for Credit Information Bureau (India) Limited. It keeps your credit score and records. Banks use CIBIL scores to see how well you handle your financial responsibilities. If you want to know more about CIBIL score, keep reading this article.
Overview of a CIBIL Score
CIBIL score is a three-digit number that shows your credit worthiness. It ranges from 300 to 900. The higher the number, the better your chances of getting a loan. This score is given by checking your payment history and other credit details. A score above 700 is considered excellent, so you should aim for a CIBIL score above 700. A good score shows lenders that you are responsible and disciplined. With a high CIBIL score, you can get loans at lower interest rates.
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What is a Good CIBIL Score?
The CIBIL score ranges help you understand your credit status:
- Score between 300 and 500: Poor category
- Score between 550 and 650: Average category
- Score between 650 and 750: Good category
- Score between 750 and 900: Excellent category
Your chances of getting loans depend on your CIBIL score. The better your score, the easier and cheaper it is to get loans. If your score is low, getting loans will be difficult.
How is CIBIL Score Calculated?
CIBIL score is made by reviewing your credit history for the last 36 months. It checks how you spent money and paid back your debts. To improve or calculate your CIBIL score, focus on these points:
- Credit Mix: Keep a balance between secured and unsecured loans to positively affect your score.
- Payment History: Paying late or missing payments lowers your score. Always pay on or before the due date.
- High Credit Utilization: Don’t use more than 30-40% of your credit card limit; going over reduces your score.
- Multiple Enquiries: Applying for many loans at once shows high credit demand and lowers your score.
- Debt-to-Income Ratio: Keep your debts under 50% of your income for a better credit score.
How to Keep a Good CIBIL Score?
If your score is low or you have a bad payment history, don’t worry. These records are not permanent. You can improve your credit profile by following these tips:
- Pay credit card bills and loan EMIs on time.
- Don’t apply for multiple credit cards or loans at once.
- Avoid too many credit applications to improve your score.
- Keep credit use between 30-40% on all credit cards.
- Check your credit report regularly and fix any errors found.
- Build a strong and long credit history for a better score.
- Limit the number of credit cards you use.
Why Does Your CIBIL Score Matter for Personal Loans and Credit Cards?
Your CIBIL score plays a main role when you apply for loans or credit cards. Lenders check your credit report first to decide your loan eligibility. A good CIBIL score increases your chances of loan approval. If your score is low, getting a loan becomes tough. But meeting lender conditions can still help you get needed funds.
How to Check Your CIBIL Score Online? Step by Step
- Go to the official CIBIL website at https://www.cibil.com/.
- Click on “Get Your CIBIL Score” option on the homepage.
- Fill in your name, email ID, and create a password.
- Provide identity proof details as asked.
- Enter correct information about your credit card to calculate the score.
- If you want more than one report yearly, subscription options will be shown. For paid subscriptions, you will need to verify yourself.
- An OTP will be sent to your registered mobile number. Enter it in the OTP box.
- Click the Submit button.
- After submitting, you will see your credit report along with your CIBIL score.
- This way, you can easily check your CIBIL score online for free.