Do you know what is CIBIL Score or Credit Score and if you do not know then today we are going to tell you about what is CIBIL Score or what is Credit Score. Many people take a loan from the bank to start their business, to buy a house, to buy a car, to buy a bike, in such a situation, some people get the loan easily, some people have problems and some people get loans. Not available. Let us tell you that credit score or CIBIL score plays an important role in getting a loan approved, so let’s know what happens.
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What is Credit Score
Credit score also known as CIBIL score is the number which determines whether the loan should be granted or not. Your financial report for the last 6 months is seen in CIBIL Score or Credit Score. If you have paid the loan or credit card bill well in the past. So your credit score remains good. If you have not paid the loan taken in the past, then your chances of getting the loan again are less. To take the loan, your CIBIL score should be more than 750, so that you get the loan quickly.
Transeunion Cibil Limited is India’s first Credit Information Company which is also commonly known as Credit Bureau. Its mission is to provide such information about consumers. Through which the business of companies can grow rapidly and consumers can get loans quickly and on easy terms. This company has the credit score records of over 550 million individuals and financial institutions.
How is the Credit Score Determined?
The report of the last 6 months of the person who is willing to take the loan is seen and his financial data is studied. After this, a score is determined keeping in mind certain factors such as timely loan repayment, credit card bill payment. Which is called CIBIL Score or Credit Score. A person’s credit score is good only if he keeps paying his loan installments on time, if he has a credit card, then also pays his bill on time.
How Cibil Score or Credit Score works
Credit information reports and credit scores are generated using this information to report your timely loan repayment and your credit card payments to CIBIL on a monthly basis by banks and financial institutions. On this basis, the loan is sanctioned. CIBIL Score or Credit Score plays an important role in the loan application process, if you want to take a loan, then after your application, your credit information report and credit score is checked, if the credit score is low then the lender ie bank or financial institution is on your loan. Do not think that if the credit score is good then the lender considers giving the loan.
So you must have known that what is CIBIL score or credit score, the thing to note here is that the higher the credit score, the higher the chances of getting the loan approved. A good CIBIL score is considered between 750 to 900. If your CIBIL score is above 750 then banks and other financial companies will easily give you a loan if your CIBIL score is less than 750. So banks and other financial companies will refuse to give you a loan, that is, the higher the CIBIL score, the higher the chances of getting the loan approved.
Top 10 ways to increase CIBIL score up to 900
How to Increase CIBIL Score In today’s time almost everyone uses credit cards, sometimes we buy unwanted things on credit cards and then have to face many problems later. There is a limit on the credit card and it has to be deposited at the right time, apart from the salary of any person, the second most important thing is the Cibil Score.
Loans are given to you by companies only on the basis of Cibil Score. If your CIBIL score is good then the bank gives you the loan without any hesitation and if your CIBIL score is bad and you want to increase your CIBIL score then stay till the end of the article.
In this article, you will be told in detail about all the ways to increase the Cibil Score so that you do not face any further problems and after that you will get the loan very easily.
CIBIL Score, also known as Credit Score, let us tell you that CIBIL is a company whose full form is Credit Information Bureau (India) Limited or an organization that monitors loan related reports across the country, so let us now know. Hey CIBIL Score Kaise Badhaye Hope you will like this article of ours.
how to increase cibil score
This question comes in the mind of most of the people that how can they increase their CIBIL score, or how to improve CIBIL score, then to answer this question, we have brought some such methods in front of you, by adopting which you can increase your CIBIL score. Can be increased very easily
1. Pay your EMIs on time to increase your CIBIL score
Always pay the credit card bills on time, also you should not have any loan installment outstanding, if you pay the dues on time then it shows your good repayment.
If you miss a single installment payment on time, you may incur penalty charges as well as loss in credit score.
2. Check your credit history from time to time to improve CIBIL score
By adopting this method, you can avoid mistakes in the record of credit history, always keep a watch on your credit report and keep checking it, CIBIL company keeps updating your CIBIL report.
But it is possible that your report has never been updated, or some mistake has been made in the update, so it is necessary to check your credit history more frequently.
3. Set the credit limit as per your ability to increase the CIBIL score
Use a credit card only when it is needed, 30% of the credit card should always be saved, it improves the credit score, if you want to increase the credit score quickly then you do not have to empty the credit limit completely.
Suppose your credit limit is 1 lakh rupees, then you should spend only 70 thousand rupees, this proves that you are financially strong.
4. Use your old account correctly for CIBIL score
If you stay connected with your old bank account then it shows that you have good association with finance companies, credit bureaus consider it good, it helps a lot in improving your credit score.
5. Maintain Good Credit History for CIBIL Score
If you pay your dues on time, then your credit history will remain good, if you want to get a good credit score, then always pay the credit bills and installments on time, this will increase your CIBIL score very quickly.
6. Increase your CIBIL Score with low loan amount
When your CIBIL score is low in the beginning then this method is a very good option for you, take small loans in the beginning and then repay them on time, if the loan amount is less then it will be easy to repay it, and slowly Gradually your CIBIL score will also increase.
7. Keep checking the guarantor or joint applicant
It is generally advised not to become a joint applicant or a guarantor, because if any installment of the loan is not paid or something goes wrong because of your guarantor, then you will be equally liable to the penalty as your guarantor .
Due to the mistake or negligence of your guarantor, you may have to bear a significant loss, due to which your CIBIL score also goes down.
So if you are thinking of becoming a joint applicant or guarantor for an account, then you should take this step carefully and carefully, as it may affect your CIBIL score.
8. Don’t apply for credit card again and again
If you really want to avoid lowering your CIBIL score then you should not inquire for other credit cards again and again, nor do you have to apply for other credit cards, always try to have only one credit card. .
9. Avoid Taking Multiple Credit Facility
You should always use the same credit card, use another credit card only when it is very necessary, usually people take the facility of other credit card but it shows their poor financial condition.
Credit bureaus think that people who take multiple credit cards are heavily dependent on credit cards, in such a situation they tend to down your CIBIL score, nowadays you will find many such companies in the market that offer attractive offers. But you have to be careful.
What is CIBIL company
TransUnion CIBIL Limited / TransUnion CIBIL Limited is a major agency for making credit scores and reports of people. CIBIL company itself maintains the accounts of credit card related payments, let us tell you that CIBIL was started in the year 2000, this company fixed It decides whether to give loans to people or not.
What is the range of CIBIL score
Let us tell you that the CIBIL score of any person does not remain the same forever, it fluctuates, the categories of CIBIL score are as follows –
1. CIBIL Score 750-900
This category of CIBIL score is considered to be very good, indicating that you have a credit history, and have paid back your previous credits on time.
In this the chances of getting any type of loan are very high, with this credit score one can take home loan, personal loan, credit card and other unsecured loans very easily.
2. CIBIL Score 700-750
This CIBIL score also shows that you have always made timely payments, this CIBIL score is considered very good, but the bank can scrutinize some details on its behalf, and the bank can offer credit card and loan as per its wish. does.
3. CIBIL Score 550-700
It shows that you have made some mistakes in clearing the past dues, you may not have paid the past dues or made late payments, giving loans and credit cards to the bank under this category seems a bit risky If the bank gives you a loan, then a higher interest rate can also be charged on it.
4. CIBIL Score 300-550
It shows that you have made a huge amount of mistakes in repaying the past dues, the main reasons can be due to the last few installments, unable to repay the previous loan, applied for the loan with a large amount In this, loan is not available on most of the occasions.
Why is CIBIL Score Important?
Cibil Score matters a lot for those people who take any type of loan from bank or are thinking of taking loan, Cibil Score will be good only then you can take loan.
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If you have taken a loan in the past and have paid it on time, then it will improve your credit history, help in increasing your CIBIL score and you will get the loan very easily.
FAQs Related to CIBIL Score
What is CIBIL Score?
CIBIL Score is a three digit number between 300 and 900, it shows your creditworthiness, if you have a high score it can help you get faster approval and better deals on loans and credit cards, mostly The minimum credit score required for loan approval in the bank and non-banking sectors is 750.
How to increase CIBIL score?
If you want to increase your Cibil Score, then keep paying your EMI from time to time, do not apply for different credit cards, apart from these, there are many ways by which you can increase your Cibil score, we have told you about them. Well explained above.
What is a good CIBIL score?
As you know that the CIBIL score ranges from 300 to 900, if your CIBIL score is more than 800 then it comes in the category of a good CIBIL score.
How to check CIBIL score online?
For this, you have to first go to cibil.com, now you have to click on get my cibil score, then select the membership product, then give your identity proof details, then pay the fee, after that your CIBIL score will be sent to your email id.
How long does it take for CIBIL score to be updated?
According to CIBIL, your CIBIL score is updated in 30 to 45 days, it takes at least 30 days to complete this task and maximum 45 days, suppose today you have taken any loan or credit If the card bill has been paid, it may take up to 45 days for it to be updated.
Conclusion
Through this article, we have learned that how to increase CIBIL score, if you have not understood anything in this article, or you want to get any more information, or you have any other suggestion for us, then you can comment in the comment box below the article. You can give us your opinion by commenting, we will try to answer your comment as soon as possible
