CIBIL Score is a three-digit numeric summary of your credit history. The score is derived using the credit history found in the CIBIL Report (also known as CIR i.e Credit Information Report). A CIR is an individual's credit payment history across loan types and credit institutions over a period of time.
What is CIBIL Score?
CIBIL Score helps the users to know his credit status. A lower CIBIL Score signifies that the applicant has low creditworthiness and banks refrain from giving loans to such applicants, where as a good CIBIL score helps users to easily get loans and credit from banks and financial institutes. CIBIL score is like the health index of how well you manage your finances.
What is an excellent CIBIL Score?
Lenders use credit scores to assess a borrower’s creditworthiness. If you manage your finances well and have a good credit history, you should have an excellent score.
CIBIL Score is a 3-digit numeric summary of your credit history, rating and report, and ranges from 300 to 900. The closer your score is to 900, the better your credit rating is.
For most lenders, 750 or above is considered to be an excellent
Does CIBIL Score play a role to get a credit card?
Yes. Most of the banks and financial institutes use CIBIL score for evaluating users creditworthiness to issue a credit card. It is one amoung other factors. But there are new age credit card issuers which are giving credit cards to users with low or NO credit score as well.
Why is the CIBIL Score Important?
CIBIL score is the numerical representation of your creditworthiness to a lender. It informs to your lender how likely and capable you may be to repay EMIs as per the the loan schedule. CIBIL scores directly impacts the following:
Your ability to get credit cards
Credit Limit for Credit cards
Your ability to get loans (Personal or Home loans or Business Loans)
Influences the rate of intrest associated with your loans
Where to check your CIBIL Score?
Most of the banks now allow their customers to view thier CIBIL score for free. Example: ICICI Bank, HDFC Bank allows its users to view the CIBIL scoe via online banking. Having your CIBIL score checked via Banks is the most secure way to know your CIBIL score.
How can you improve your CIBIL Score?
There are various ways to improve your CIBIL score - but do note it takes time. One of the easiest way is to get a credit card and timely pay the full dues. This over time improves your credit score assuming you are managing your other finances and re-payment of loans properly