CIBIL

CIBIL Score

While applying for a loan or a credit card, your primary concern can be whether lenders will approve your application. Your worry is logical, considering the multiple aspects that influence your loan or credit card application. It is necessary to check your CIBIL score before applying for a loan or a credit card because banks, NBFCs, and other financial establishments lend credits or loans depending on your credit score. You can remember that the higher your CIBIL score is, the higher the possibility of lenders approving your loan or credit card application. You can follow the present guide to learn more about CIBIL scores.

What is a CIBIL Score?

A CIBIL Score is a number comprising three digits that indicate your report. It is a numerical summary of your financial credit history ranging from 300 to 900. A score near or around 900 is considered excellent, whereas a score above 750 is good. On the other hand, a score near or around 300 is awful, and is regarded as an unqualified score, and there are meagre chances of availing of credits. Thus, checking your CIBIL score frequently is necessary. Your preceding loans, repayment history, income, and financial condition determines your CIBIL score. Lenders suggest a CIBIL score of 750 or above while approving loans or credit card applications .
In simple words, the CIBIL score shows your credit ability. A great benefit of checking your CIBIL score is that you will know about the changes in your score and report, rectify the errors, and take relevant actions to correct the false information so that it does not affect your eligibility later.

What are Good CIBIL Scores?

A CIBIL Score of 900 is excellent, and lenders consider good CIBIL scores for lending loans and credits. You can apply for a loan or a credit card if your score exceeds 750. The CIBIL scores and their connotations are as follows:

No history hints that you have not used a credit card or taken a loan.
350-549 scores indicate that you often fail to pay credit card bills or loan EMIs.
550-649 shows a fair CIBIL score and means you are trying to boost your score by meeting deadlines.
649-749 implies a good CIBIL score and means paying your dues on time.
750-900 pinpointing excellent scores means always paying your dues on time and never missing deadlines.

What are Good CIBIL Reports?

A CIBIL report is a document providing detailed information about your credit history across numerous lenders over a specific tenure. It is a complete report that gives information related to your borrowing history and repayment ability information. It comprises the following details, and you can download the report for free:

Your personal information, such as name, birth date, residence address, and gender
Employment information and earnings
Number of hard credit enquiries lenders made on loan or credit card application receipts
Earlier and current loans, together with payment record
Loan defaults
Information on settled loans
Overall credit limit and the monthly spent amount
Defaults on credit card bill payments
CIBIL score

The CIBIL report gives lenders detailed information about your credit ability depending on your earlier and existing credit behaviour. Depending on the report, lenders can take a good decision. It allows you to evaluate your credit habits and take appropriate action if required. Awareness is a significant step toward proper financial health. When the number of loans and credit cards compiles, the most disciplined can lose control of their financial condition. You can not take it lightly because financial institutions do not record all your financial habits. Therefore, a CIBIL report is empowering because it aids in understanding how credit works and keeps you ahead.