A credit score or CIBIL score represents an individual’s credit repayment capacity and creditworthiness with the help of numerical representations. It is evaluated according to a person’s credit history. The credit score includes a three-digit number that ranges between three hundred to nine hundred. CIBIL score is a numerical tool used by banks or financial institutions before granting any type of loan to an individual per the guidelines issued by RBI. It’s important to conduct a CIBIL check to acquire an urgent loan or pay your dues.
Besides, the tool is used by financial institutions to determine the rate of interest and tenure of loan repayment, among other aspects. It is important to ensure you have a good credit score as it allows you to obtain credit from banks easily. It’s a standard metric that symbolises your overall financial status or financial well-being.
What is a Good CIBIL score?
A CIBIL score of more than 700 and close to 900 indicates you’re a reliable borrower. So, it increases the chance of loan approval on your behalf while lowering the interest rate and easing the repayment terms. On the contrary, when your credit score is very low, it can mitigate your chances of acquiring credit, as the banks often find it hard to deal with such borrowers in the future. Find out your CIBIL score right away by clicking on CIBIL score login.
To learn more about the status of your CIBIL score, visit an online portal and click on the CIBIL check option. It’s important to note that a credit score takes into account your past credit details. However, it is not related to the investment portfolio. Make a CIBIL score login to determine the factors that impact your overall credit score.
What Are The Elements That Impact Your Credit Score?
Factors that impact your credit score are listed below:
Loan repayment history:
If you want to retain a high credit score, you must repay any monthly credit card bills and EMI loans as soon as possible. Any delay in credit card bill payments or payment of monthly EMIs can tamper with your credit score. A failure to pay loans regularly can deteriorate your ability to manage credit health. According to a CIBIL analysis (financial express report), a thirty-day delay in credit payment can mitigate your credit score up to a hundred points.
Credit utilizaton ratio:
Obtaining multiple loans and credit cards at a time doesn’t alter your credit score. However, a high credit utilisation ratio can have a negative impact on the credit score. It’s highly recommended that you utilise only 30% of the available credit limit. Besides, a high credit utilisation ratio indicates an increase in your debt or you won’t be able to repay the loan. Thus, it’s important to keep an eye on credit card expenses to avoid exceeding the limit.
Former loan status or queries
It takes into account the serious queries you’ve made regarding loans in the past. If you have obtained multiple loans or even if you’ve tried to apply for several loans with a short time limit, it’s more likely that your CIBIL score will go down.
How to conduct a CIBIL check?
- Visit www.cibil.co.in or www.cibil.com and access your account upon completing the Cibil score login.
- On the left-hand, you can opt for the ‘credit score.’
- Next, click on the button ‘check my score.’
- Now, you will have to enter details such as name, DOB, and address
- Opt for the ‘submit’ option
- Find out the CIBIL score on the page ‘check my score.’
The task of calculating your CIBIL score has become easy. Follow the steps mentioned above to check your creditworthiness right away!