CIBIL Credit Score: Do you hold many credit cards? Have you taken loan schemes from different lenders? Are you new to credit card and loan benefits? Looking for complete information about Cibil’s credit score, then this guide is the best one to clear all our queries. You can even check your credit score online for free of cost and find out how it is calculated too.
In this article, you will find the details like, What is CIBIL Credit Score, the Key Difference between a CIBIL Score and a Credit Score, What is Good Cibil score, What is CIBIL report, the Advantages of Cibil score for loans, Step-by-step instructions on How to check CIBIL Credit Score online, what is the CIBIL Credit Score Range, and much more related to CIBIL Credit Rating.
- What Is Meant By CIBIL Credit Score?
- What is a Good CIBIL Score & CIBIL Report?
- What is the difference between credit score & credit report?
- Difference Between CIBIL Score and Credit Score
- Why Maintaining A Good Credit Score Is Important For Loans?
- How To Obtain A CIBIL Credit Score & Report?
- Meaning Of The CIBIL Score Range
- What Are The Factors Impacts Your CIBIL Score?
- Factors That Don’t Affect CIBIL Credit Rating
- Perks Of Good CIBIL Credit Rating
- How Is CIBIL Score Calculated?
- How Many Credit Bureaus are Available in India?
- FAQs on CIBIL Credit Score Range
- What is a good CIBIL Score for a loan?
- How can I raise my credit score in 30 days?
- What is a good credit age?
- What CIBIL score is required to apply for a personal loan?
- Is my CIBIL score affected if I check my CIBIL score often?
- Who can access your CIBIL Score?
- How does CIBIL find the details of your Credit/Loan History?
- What is meant by CIBIL 2.0?
- How to correct errors in your CIBIL Report?
What Is Meant By CIBIL Credit Score?
A Cibil score is a 3-digit number that was given by the credit information bureau Ltd (India). It determines your creditworthiness and ranges from 300 to 900. CIB is a credit rating agency sanctioned by RBI. Maintaining a cibil score with a good range is most important for all credit card users and loan applicants.
It impacts your credit card score and while applying for any other loans. If your score is high then no one can stop you allowing with the loan and credit cards. For more details on why it is crucial to maintain a good CIBIL credit score, continue your read!
What is a Good CIBIL Score & CIBIL Report?
A Cibil score varies in the range between 300 and 900 and it is provided completely based on credit history and behavior. A good score of CIBIL is between 720 and 900. If you have a good cibil score then borrowers can attain numerous advantages like higher loan amounts, lower interest rates, faster loan approvals, and save your money and time as well.
The legal document that lists the history of borrowings and repayment is called a CIBIL Report, also named Credit Information Report (CIR). Based on the information provided in the CIR, your CIBIL Credit Score or rank is originated and also it impacts your financial position. CIBIL score is treated as the main proof of your creditworthiness in India.
Do you wonder what exactly a credit report includes? Check here. A Cibil credit report consists of credit score, credit-related financial transactions, payment history, data about your loans approved from various lenders, balances of any loans, and more.
If a credit report is assumed as a report card then credit score is like a percentage in your report card. The higher percentage you get the higher interest rates and other effective deals you can opt for at any time. If you maintain an average credit score of 750 then you can achieve better rates of interest and great offers.
What is the difference between credit score & credit report?
A credit report is a document where it records every single piece of information about credit history whereas a credit score is a three-digit numeric that defines creditworthiness. For more differences do look at the below table:
|Credit Score||Credit Report|
|A 3-digit number that denotes the customer’s credit report.||A text-based document that reports everything about a customer’s credit history.|
|You can check credit risk based on the score and data given in the report.||It performs as a credit reference.|
|It displays your creditworthiness in a number ranging from 300-900.||It includes various data such as payment history, each loan amount, the number of loan details, etc.|
|Banks can provide the credit scores on their own or they may be addressed by the frequently availed company.||The three main credit reporting bureaus are Equifax, Experian, and Transunion.|
|The credit score can be obtained from lenders, fico, or other credit bureaus.||The credit report can be obtained from the above bureaus.|
Difference Between CIBIL Score and Credit Score
Above you have understood the difference between a credit score and a credit report but now you will be knowing the key difference between a Credit Score and CIBIL Score. Let’s check them:
You should know that CIBIL is linked with various major banks, housing finance companies, and Non-banking financial companies. All these credit agencies are approved by the Reserve Bank of India (RBI). The credit rating fixed by CIBIL is called CIBIL Score.
As per your credit history, the total due amount, loan payments, interest rates, and many more, the credit score is calculated. The credit rating or credit score shows the creditworthiness of a potential borrower.
Why Maintaining A Good Credit Score Is Important For Loans?
A good CIBIL Score ranges between 700 and 900 and maintaining an average good score is very important for customers. This score is also considered by Banks and NBFCs to approve the application of retail loans, and also benefits customers with other offers like:
- Upgrades your eligibility for other loans
- A quick loan application process
- Low-interest rates for the loan
- The easier loan documentation process
- User-friendly and flexible repayment tenure
- A higher loan quantum
- Get attractive benefits with a credit card
How To Obtain A CIBIL Credit Score & Report?
To get a CIBIL score and report, you simply have to visit the credit rating agency in India ie., CIBIL. For obtaining the credit report or score, you have to pay some amount to the CIBIL. The amount of charge is Rs.500/- for individual credit report applications. If your bank or lender asks you for a credit report with a score for verifying the loan eligibility then they need to pay for a copy of the report too.
Still, if you are looking for free online sites or platforms to check your credit score then there are a few websites that provide the same for free of cost. But they get benefitted from you by downloading and signing up as members on their websites. The detailed steps to check the CIBIL Score or credit report with paying and without paying are explained below:
What Is The Process To Pay & Check Your CIBIL Credit Score Online?
To check the CIBIL Credit Ratings online with paying, you should follow the simple steps mentioned below:
- Visit the official CIBIL website and log on to it.
- Now click on the Know Your Score option.
- Enter the details required in the online form.
- After filling out the form and accepting changes, it redirects to the payment page.
- Choose a suitable mode of payment from the options like credit cards, prepaid cards, net banking, etc.
- The amount you should pay to get the credit report is Rs. 550/-
- After paying, you will be moved to the authentication page which asks you five questions related to your credit history. At least, you need to answer 3 questions correctly to validate your identity with the CIBIL.
- In the next 24 hours, you will be received an email with the credit report.
- If you get failed at authentication, then you have to fill out the application and send it to CIBIL via mail. After validation by CIBIL, the report will be obtained via mail only.
Step-By-Step Process On How To Check Your CIBIL Credit Score Online
The simple procedure to check the CIBIL Score Online is provided below in a step-wise manner:
- Initially, a customer should visit the official website of CIBIL.
- Now, check for the option called the ‘Get Your Free CIBIL Score button on the homepage.
- It redirects to the next page where you will be asked to enter the needed information like Name, Email ID, and Password.
- Link with any ID proof (passport number, PAN card, Aadhaar, or Voter ID).
- After attaching the id proof, give your DOB, contact details, and PIN code.
- Press the Accept and Continue buttons.
- Provide the received OTP number in the box and click on the Continue button.
- Now, choose the option called Go To Dashboard to check your credit score.
- After pressing the dashboard button, you will be redirected to the myscore.cibil.com website.
- Login to the site by clicking on the Member Login and see the CIBIL Score.
Also Refer: How to Close Credit Card
Meaning Of The CIBIL Score Range
The range of the CIBIL Score starts from 300 and ends at 900. Now, we will know the details regarding each range of a CIBIL score and try to maintain the average CIBIL score for smooth dealings in the future. Let’s have a glance at the below table:
NA/NH: If you see this sort of score when you check the CIBIL score online for free then it states that there is either no credit history or not applicable. If you have a credit card or applied for any loan, then only you will have the credit history.
350 – 549: Customers who have the CIBIL score in this range are considered as having a bad credit rating. Any offers will be not entertained to he/she with this CIBIL score and also you are at a high risk of turning into a defaulter.
550 – 649: This range of CIBIL Score is considered a fair rating and a few lenders will entertain these borrowers for offering credit cards. You will see the high-interest rates on the loan so improving the CIBIL score is more important at this range for better deals.
650 – 749: This CIBIL Credit Score range is the right start to get a position in the excellent score range. You have to pay properly all your bills and increase your score further. Easily you will get loan approval from lenders with this range. Still, you won’t be eligible to negotiate on the best deals or the loan rate of interest.
750 – 900: Borrowers with this range are considered to be responsible and consistent to pay. So, banks and loan lenders will offer these customers loans and credit cards at the lowest risk.
How Can I Improve My CIBIL Score? – Tips On CIBIL Credit Score Improvement
Prior we have discussed how important to improve the credit score for availing the advanced benefits from banks and lenders. So, improving and maintaining a high credit score can be done via these tips. If you follow the below tips that will surely help you better your cibil score:
- Do pay the bills before the due date
- Low balances will help you out
- Always pay the EMIs on time
- Escape over-leveraging
- Keep your eye on bill payments, payment history, and credit history once a month and make sure it is error-free
- Apply for new credit in moderation
- Have a good credit mix
- Check your guaranteed, co-signed, and joint account at every month’s end.
- Monitor your credit report annually and make it with no errors.
- Keep your financial records properly with no late payments and great debts.
- Use valid apps and sites to get a copy of the credit reports.
- Sustain with a low credit exposure like 20-30% of the actual credit card limit.
- The most crucial tip to follow is to use the credit card in a disciplined manner. Ensure to not cross the credit limit.
- Ensure to examine the credit score and cibil score every week or regularly.
What Are The Factors Impacts Your CIBIL Score?
Four main factors affect the CIBIL score. Every factor has its weightage so understanding each element and how they impact your credit ratings is essential. So, let’s have a look at the below explanation:
Credit Utilisation Ratio (25%)
It doesn’t matter how many loans and credit cards you hold but utilizing them at a high ratio will affect your score. The best and decent credit limit you should not cross on spending is 30% so maintain this limit and control your credit expenses. Else, we suggest you increase your debt and turn into a defaulter.
Credit Type and Duration (25%)
Credit history plays an important role in affecting the CIBIL Score. Hence, the age passed and the average number of years you hold the credit account from the start is very crucial for CIBIL. So maintain a good balance of credit history of secured and unsecured ones and increase your score. If you start this balancing at the early stage then you can easily become a low-risk borrower. Thus, helps approve loans to buy a car or house in the future.
Payment History (30%)
The first and foremost factor that impacts CIBIL score mainly is payment history. If you want to maintain a high score at CIBIL, you need to pay all credit card bills and EMIs of your loans on time without any delay. The recent report on CIBIL analysis by the financial express, exposed that delinquency for 30 days can decrease your CIBIL score by 100 points.
Other Factors (20%)
One more important factor is Credit Inquiry. It is used at calculating the CIBIL Credit Score. Making the credit requests multiple times will affect the score so we suggest you distribute the credit applications over the year rather than all at a time.
Factors That Don’t Affect CIBIL Credit Rating
From the above module, you have become aware of the factors that affect your cibil score. But have you ever thought about the factors that don’t impact your credit ratings? If yes, then this section is completely on it. Have a glance at the list:
- Checking your own credit score
- Debit card
- Savings Account
- Cheque bouncing
- Fixed Deposit
Perks Of Good CIBIL Credit Rating
If you hold a good credit score then you can be benefitted from numerous offers. Below are some of the advantages that a good CIBIL Score borrower can avail:
- Low-interest rates
- High credit limit
- Higher chances of loan approval
- Quick credit card sanction
- Access to pre-approved loans
- Great discounts on charged and processed fees
How Is CIBIL Score Calculated?
There are a few important factors that are considered while calculating the CIBIL Score. They are as such:
Loans as a Proportion of Income
This factor checks that you are holding a low loan balance or a high loan balance. Maintaining a low loan balance is healthy as increases your score whereas a low loan balance reduces your credit score.
Multiple loan inquiries are symbolic of credit-hungry behavior and it impacts negatively on your score.
Track Records of Past Payments
It verifies all your past repayment records. If you are consistent at paying the bills on time then your score increases whereas delayed payment affects on score. When you delayed the recent payments then it affects you negatively.
Secured Vs Unsecured Loans and Credit Cards
Higher credit card balances reduce your score. If you have a mix of different unsecured or secured loans or credit cards then your credit score rises.
Previous Settlements, Write-offs, and Defaults
Many write-offs cause lower scores. When they are recent then it affects negatively on your score. If you have various delays or defaults on secured loan repayments than unsecured ones then it affects your score negatively.
How Many Credit Bureaus are Available in India?
A credit Bureau is a trusted credit agency that gathers all the credit/loan history and other credit or financial data of every individual and creates credit scores and credit reports. This credit score and report will get shared with all the lenders and banks to check your creditworthiness and approves your request for a loan or credit card.
Some of the leading credit bureaus in India are TransUnion Credit Information Bureau (India) Limited, CIRF high mark, Equifax, and Experian.
FAQs on CIBIL Credit Score Range
1. What is a good CIBIL Score for a loan?
A CIBIL score of 750 and above is a good score for a loan and other credit benefits too.
2. How can I raise my credit score in 30 days?
The two main steps that can help to raise your credit score in 30 days are paying bills on time and paying your credit card down balances.
Scoring an excellent credit score is very difficult yet beneficial as it helps borrowers obtain great deals like loans, credit card offers, and discounts on utilities. Consumers with the perfect credit score are between the ages of 56 and 74.
4. What CIBIL score is required to apply for a personal loan?
A CIBIL score of 750 and above is excellent and sufficient for getting any personal loans or unsecured loans or secured loans.
5. Is my CIBIL score affected if I check my CIBIL score often?
No, it doesn’t affect on your CIBIL score because checking your CIBIL Score is not a hard inquiry.
6. Who can access your CIBIL Score?
Only CIBIL Members like banks, lenders, you, and other authorized institutions can access your CIBIL Score.
7. How does CIBIL find the details of your Credit/Loan History?
Your credit/loan history will be provided by the banks and other authorized government agencies to the CIBIL in favor of accessing the credit reports and CIBIL Scores from the CIBIL portal.
8. What is meant by CIBIL 2.0?
A recently launched scoring model which is used by TransUnion CIBIL Limited to calculate the credit score and report for individuals is called CIBIL 2.0.
9. How to correct errors in your CIBIL Report?
The steps to be taken to raise a dispute with CIBIL for correction of any errors in the report are as follows:
- First, review your CIBIL Credit Report provided by your bank or lender.
- If you found errors then fill out the CIBIL dispute form online.
- Process the form and it gets verified by the CIBIL.
- Wait for some time to get resolved.
You can even ask for the control number of your credit report or communicate with CIBIL by mailing the dispute report at email@example.com
We think that the shared information on CIBIL Credit Score benefitted you to plan your repayments and increase your CIBIL score to higher. If you need other details on the same, please suggest us so that we will do research and provide the content related to your queries soon.
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