Did you know?
CIBIL Score is required for Personal Loan. When applying for a Personal loan, the CIBIL score will be one of your main factors. Credit rating agencies manage and generate credit scores for customers all around the globe. The CIBIL score, which is a three-digit number that represents an individual’s credit history, is a three digit score. This three-digit number is calculated from past credit history and current credit activities. The CIBIL score can range from 300 to 900. A person with a CIBIL score greater than 750 is considered creditworthy, whereas someone with a lower score is not.
Your CIBIL score does not differ from that of other agencies
There are many credit bureaus in India, including CIBIL and CRIF High Mark, Equifax and Experian, that can provide credit information. These credit bureaus use their models to score and measure the individual’s credit score. These credit bureaus will provide similar credit information, but there might be a slight difference in credit scores. The credit information updated by different bureaus is usually reported on a different date.
CIBIL scores are often lowered by checking your CIBIL score.
This inquiry is classified as a soft inquiry if the individual requests a CIBIL score from an authorized third party. The individual does not have to consent. Pre-approved credit cards are one example. A lender will ask for a credit history when you apply to borrow money. An inquiry from a lender in such cases is considered a difficult inquiry that can impact your credit report. Your credit score will be affected if you have to make frequent hard inquiries.
CIBIL Score is not the same as Credit Ranking
Many people are confused about the terms of CIBIL Score or Credit ranking. This is especially true for first-time borrowers. The CIBIL score is a measure of creditworthiness and can range from 300 to 900. Credit ranking, on the other hand, is a range from 1-10 and can be used to check the creditworthiness a company.
CIBIL score does not have any relation to your investment and saving information
Your past credit history, as well as your activities, will determine your CIBIL score. Your credit report also reflects your past and current credit history as well as activities. Credit reports do not contain any record of savings or investments.
CIBIL does not have any responsibility for the editing or removal of information.
The credit information and activities of individuals can be trusted by banks and other lending institutions like NBFCs. CIBIL draws on these sources to create credit scores and credit reports. CIBIL only generates credit reports and does not have the authority to modify or delete any information. If you find errors in your credit report, contact the authorities.
These are just a few facts you should know in addition to the ones already mentioned.
Multiple credits may lower your CIBIL score
A loan will be granted to an individual who has a lower CIBIL score, but with a higher interest rate.
Your CIBIL score will be negatively affected by multiple loans and credit cards
Even if you do not request it, your CIBIL is still there
How do you maintain your CIBIL Score?
Your CIBIL score is a measure of your creditworthiness. To be eligible for a loan of high value at a low interest rate, an individual must have a good CIBIL rating. Here are some things you need to remember in order to keep a high CIBIL score.
Also read: How to Get an Easy Business Loan in India
Avoid any delay or default in repayment
Your CIBIL score and credit score should be checked at least once a year.
Credit utilisation should be maintained
A balanced credit mix is essential
Multiple inquiries should be avoided as they negatively impact your CIBIL score
Avoid exceeding your credit limit
Your credit history is not complete without closing old credit cards.
These points will assist you in maintaining your CIBIL score with minimal hassle. You should also be careful with your loan and credit cards as this can cause you to fall into debt. A CIBIL score must be obtained for Personal Loans. Please ensure that you check your CIBIL score prior to applying for a Personal loan.