CREDIT SCORE / CIBIL REPORT ADVICE

Credit Score / CIBIL Report Advice

The Credit Score / CIBIL Report section is aimed at addressing frequently asked question on credit score/rating, CIBIL reports and how it impacts your loan and credit card eligibility. It is aimed at helping you understand your credit history and any issues which impact your credit score.

A credit score is provided by 3 credit bureaus of RBI. The 3 credit bureaus are CIBIL, Equifax and Experian. In India, amongst the bureaus, CIBIL is more commonly known since they have been around in India for a longer period of time. Lenders such as banks and NBFC’s use the credit score (be it CIBIL score, Equifax Score or Experian score) to value the potential risk posed by every customer. Lenders use this CIBIL score to determine who is eligible to avail loans and credit limits.

Your CIBIL score is a 3 digit number and the CIBIL score ranges from 300-900. 900 is considered the best score. If you don’t have a credit history, your CIBIL score will be -1. If you have a credit history of just 6 months, your CIBIL score will be 0. It usually takes 18-36 months to build your credit history.

Why to read the Credit Score / CIBIL Report Advice

YOUR CIBIL REPORT DIRECTLY IMPACTS YOUR ABILITY TO OBTAIN a credit card, buy a car or home, rent an apartment, or even get a new job. Knowing how to read CIBIL Report, correcting falsely reported information and ensuring accuracy of your CIBIL report are in your best interests.

If you are applying for a loan or a credit card, banks check your CIBIL score to view your credit worthiness. It is better that you check your credit score (score (be it CIBIL score, Equifax Score or Experian score) before you approach a bank for a loan. Make sure that you check your CIBIL score before approaching banks to avoid the risk of rejection. You can check your CIBIL score often to avoid having a low CIBIL score, and maintain a good CIBIL score.

CreditMantri helps you understand the status of your credit health. You can upload a CIBIL report and we provide an online analysis real-time. If you don’t have your CIBIL report handy, we have tied up with Equifax to offer you a credit score online. Usually, you have to pay a fee to get your Credit report. However, at CreditMantri, we offer a free credit health check – we get your score and credit history and provide an online analysis. CreditMantri helps you get a detailed credit assessment explained in simple terms so that you know where you stand.

This credit report analysis by CreditMantri helps you improve your credit score and history, discover loans and credit cards best matched for your credit profile and also helps reduce EMI and borrowing costs.

A FEW SIMPLE THINGS YOU CAN DO NOW TO IMPROVE YOUR CREDIT SCORE:

If you have a low CIBIL score, banks and NBFC’s will not approve your loans or credit cards. So, in order to get a loan approved, you must improve your CIBIL score.

  • Stop Applying for Credit: If you apply for a loan with a low CIBIL score, you will either be rejected by lenders or might get an approval but at a higher interest rate. Each rejection will cause your CIBIL score to drop further. Therefore it is advisable to improve your CIBIL score to 750 before you apply for a loan or a credit card.
  • Make payment on time: Avoid late payments on loans and credit cards. Not repaying dues on time will lead to a negative effect on your credit score. If you don’t repay your loans on time, it impacts your credit score and hence your application might get rejected.
  • Don’t use too much of your credit limit offered: Always keep your credit utilisation at a level which is really required. Avoid using more than 50% of the total credit card limit consistently. Lower your credit balance, the easier it is for you to repay them. If you use much of your credit limit, it becomes difficult to repay them.