Cibil score is the 3-digit numerical summary of an individual credit score history. It ranges from 300 to 900. Cibil score can be determined or calculated by the previous loan history and previous credit score history of the borrower.
We come across the cibil score when we search about the loan opportunities and eligibilities. Cibil stands for credit information bureau india limited. Cibil is the first credit information company. Usually, our credit score is referred to as the cibil score.
Companies usually provide cibil reports based on previous credit scores which contain our borrowing history, ongoing loans, credit card dues, etc this is called as the credit information report(cir). We can check all our details in cir on cibil website.
Companies also provides cibil score along with cibil reports based on users’ credit history and credit report. Cibil score varies with credit reports and credit behavior. Cibil score increases if the borrower pays installments on time and finishes the total due on the credit card on time and it decreases if emi is missed for a month.
Use of cibil score:
Cibil score denotes or shows the creditability of the user i.e, how good the credit history has been, which is useful when we apply for any form of credit like personal loans. Thus higher cibil score is important. Usually, companies will not offer credit cards to those with fewer credit scores lesser than 750.
Monitoring cibil score:
Cibil score should be frequently checked to avoid the errors in credit history of users. We get personalised loans and other credit card offers with better cibil scores. Users can also raise complaints against disputes in the cibil score online.
Calculation of cibil score:
Cibil score is calculated based on the credit history of the borrower, if the borrower did not take any credit benefits like loans, or credit cards, the cibil will consider him/her as a new to credit candidate, which means he/she did not have any credit history, thus cibil score is calculated.
Advantages of higher cibil score:
- Higher cibil score had greater chances for loan and credit card approval.
- Higher cibil scores provide loans with less interest.
- There will be lesser chances to become a defaulter.
- Loan access is easier.
- Discounts will be available.
Factors affecting the cibil score:
- Payment history
- Credit exposure
- Credit type and duration
- Other factors
Process to check the cibil score for free:
- Log in to the paytm mobile app.
- Go to the loans and credit cards.
- Select free credit score.
- You can check your credit score for free.
Credit/Cibil score is the 3-digit number that refers to the creditability of the user and explains the flexibility of his/her credit history.so higher the cibil score greater will be the chances to get loans and credit cards.so everyone must maintain a high credit score and should check their credit score regularly to avoid errors in credit history.