Factors affecting your CIBIL score

What is CIBIL Score?

The CIBIL score represents a three-digit number of your credit history. The score is calculating based on an individual’s credit report. Which contains his/her credit history. CIBIL scores range between 300 and 900.

Main Factors witch affecting your CIBIL score:

Credit History:

Suppose the score is close to 900, a low score. Then the banks do not have the opportunity to lend. They are making it difficult to get loans from banks.

The CIBIL score used important because it is worthy. For an individual’s credit, many credit institutions operate the S / him to check when a loan is applied.

In addition, sometimes, a person applies for a visa. Then the authorities ask for the applicant’s CIBIL score. Main Factors witch affecting your CIBIL score:

Credit utilization limit:

A higher credit usage limit over time gives your credit bureau a negative impression of the effects of your credit report. And these points to your increasing debt burden over time. Credit utilization is determined by dividing your total outstanding amount by your credit limit.

Increase in credit limit:

Suppose your credit utilization decreases over time or is low. It shows that your repayment obligation is falling and will help improve your credit score. The term of service of the loan also affects your CIBIL score. Suppose you are wisely serving a long-term loan by repaying the loan amount on time. It will positively affect your credit score.

If not checking credit report regularly.

It is important to check the credit report every six months to correct mistakes if any. Delayed reporting or misreporting by banks / financial institutions may reflect misinformation. About your credit report and lower your CIB score.

For any type of loan, a guarantee:

Score negative on the job as a guarantor for a person’s loan will not affect your credit. But if the person for whom you have guaranteed and fails to pay or delay payment of your CIBIL / credit.

credit Exposure:

25% the credit limit will increase.
Other factors:
20% will attribute to other factors.

How to maintain a score:

  1. Always make sure your payment must pay on time.
  2. Maintain the mixture of secured and unsecured loans.
  3. Avoid asking too many questions about loans or credit cards.
  4. Check your Cable Score report regularly (CIBIL).

Suppose your CIBIL score is between 300-599. You do not qualify for a loan, According to a report by Credit Mantri. Suppose the CIBIL score is between 600-749, although the score is not very high. But it gives an individual a good chance of getting a loan approved.
A lender offers you the best opportunity to get a loan approved from seven hundred and fifty and above. Also, a person may negotiate a lower interest rate if he/she has a good credit score.

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