CIBIL Score is a score that tells your financial score. CIBIL score is also known as credit report. It is needed at the time of bank loan. Generally, the CIBIL score records the payments related to loans and credit cards submitted to CIBIL by banks and other lenders on a monthly basis. This makes it easy to give loans to banks and NBFC companies.
Many times we have to take a loan, but we do not know our credit score at all. Now you can check your CIBIL score for free through Paytm.
In the western countries a credit monitoring system was created in the year 1950. On the same lines, in the year 2000, a Credit Rating Agency was started in the name of CIBIL. CIBIL is playing its role well in making the country financially literate. With this, the financial market is being made as transparent as possible so that the financial institution can manage the risk properly. CIBIL is constantly updating its database, technology, software, increasing awareness among financial companies and working to prevent bad loans (in which recovery is not possible).
“700 to 850 is placed under a better credit score.”
What is TransUnion CIBIL? What does it do?
TransUnion CIBIL Limited is India’s first Credit Information Company, also commonly referred to as Credit Bureau. We collect and maintain records of payments to individuals and commercial entities in respect of loans and credit cards. These records are submitted to us by the bank and other lenders on a monthly basis; Using this information the individual’s CIBIL score and report is developed from which lenders evaluate and approve loan applications. Credit bureaus are licensed by the RBI and regulated by the Credit Information Companies (Regulation) Act 2005.
What is CIBIL SCORE?
The full form of CIBIL is Credit Information Bureau of India Limited. TransUnion CIBIL Limited is India’s first Credit Information Company also commonly known as Credit Bureau. Using this information, a Credit Information Report (CIR) and a credit score are developed, thanks to which lenders evaluate and approve loan applications.
CIBIL Transunion Score is a three digit number which is between 300 and 900. It depends on the credit history. Here a high credit score is considered good. If we talk in one word, then it shows the ability to return the loan amount with interest within the time limit. This is the number that decides whether the loan should be given to the applicant or not.
“Credit score indicates the eligibility to return the loan amount.
CIBIL Score or Credit Score contains the financial report of your last six months. If you have made proper loan and credit card payments, then your credit score is good. There is any mistake here, then now you will have to face many difficulties in getting the loan. If your credit score is more than 750 then you can get loan easily. Transunion CIBIL Limited is the first credit information company in India that provides such information about the loan applicant. So that consumers can get loan quickly and on easy terms.
How does CIBIL score work?
Timely loan and credit card payment reports are submitted by banks and financial institutions to CIBIL on a monthly basis. Credit Information Report and Credit Score are created using this information. CIBIL Score or Credit Score is seen prominently for the approval of any loan. Any financial institution checks the credit score of the applicant before granting a loan. If the credit score is low then the lender ie the bank or financial institution first asks to correct it. Loan is easily available if the credit score is good (750-900).
How can I improve my credit score?
Apply for new credit in a moderate way.
Always pay your due amount on time.
Monitor your co-signer, guaranteed and joint accounts monthly.
Review your credit history frequently throughout the year.
Always keep your balance low.
If the bank wants to increase the credit limit, then definitely increase it, but use it as per the need. With this, the available credit is always more which improves the credit score.
CIBIL SCORE Calculate is done on the basis of credit history. Here several things are taken into account. Such as – Credit History (30%), Credit Mix & Duration (25%), Credit Exposure (25%), Credit Utilization (10%), Recent Credit Behavior (10%).
There are many such facts that keep changing in CIBIL SCORE. Some important facts are mentioned below.
Credit USE – Loan credit is decided on the basis of credit score, how much loan you can get. Never use full credit.
Loan Duration – Always take maximum time to repay the loan. Due to this the EMI is very low and loan EMI is deposited easily. If you have the budget then you can deposit the loan amount even before time. This keeps the credit score good.
Unsecured Loans – As its name suggests, banks or NBFC companies do not keep any asset as mortgage in such loans. Such loan works for your CIBIL SCORE.
LOAN Repayment – How the repayment of any loan has been done or is being done. Failure to pay EMI on time adds to the problem.
Loan Applications – If a loan is applied for several places simultaneously and it is rejected, then that is also counted. Too many rejections ruins the credit score. In such a situation, avoid applying for a loan in many places at once.
Credit Limit – It has been seen many times that people always want to increase credit. This is enough to spoil the CIBIL SCORE.
Guarantor / Co-Borrower – Taking a loan or becoming a guarantor both comes under the credit score. In such a situation, avoid becoming a guarantor in a risky loan.
What should be the CIBIL SCORE?
Generally it ranges between 300 and 900 and a score above 750 is considered as the correct CIBIL score. If the CIBIL SCORE is less than 300 then no bank will give the loan. Before giving a loan, any financial institution wants to decide whether the applicant will be able to return the loan amount with interest on time or not?
A score between 750 to 900 shows the best financial track record. Here you can get all types of loans on your terms. Like Loan Tenure, Loan Amount, Credit Card Limit.
Loan credit card will be easily available between 600 to 700 but, Negotiation cannot be done.
The loan amount and credit card limit is very less from 450 to 600.
Getting a loan if you have a credit score of less than 450 is entirely up to the bank, if the EMI is given on time, then maybe it can be improved.
HOW TO CHECK CIBIL SCORE?
1. Click on FREE CIBIL SCORE CHECK to check CIBIL Score.
2. Here a form has to be filled in which name, address, PAN card number, and phone number have to be entered.
After this some questions have to be answered.
3. Your CIBIL score is in front of you in no time.
4. Here you can check your credit score for free only once. If you want to check further then you have to subscribe to CIBIL.COM.
If you have any question related to CIBIL SCORE, then definitely ask in the comment box. Your question helps us to get more information to you. Do share this information with your friends through Facebook, Whatsapp and other social media.
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