How is your CIBIL score calculated ?
Whether or not the bank will lend you, this much depends on your CIBIL score. It is thus important to know how the CIBIL score is calculated. By the way, many types of complex multiplication are done to remove it.First let us understand what CIBIL is:
CIBIL (Credit Information Bureau (India) Limited) is a Credit Bureau or Credit Information Company. This company is engaged in maintaining the records of all the credit-related activities of companies as well as individuals including credit cards and loans.
CIBIL is a credit information database and does partake in any kind of lending decisions. It provides data to the banks and such other lenders for quickly and efficiently filter the loan applications which they receive in the course of their business.
But, this is the most necessary loan repayment trend. This means that if you are honest in repaying the loan, the bank will also show interest in giving you the loan.
There are multiple tools from where you can easily check your credit score or CIBIL score for free for eg: paisabazaar cibil score free, bankbazaar cibil score by providing your PAN card details.
Let's see here what exactly is the CIBIL score and how to calculate it.
What is CIBIL score?
CIBIL score is a number of 3 digits. A
report is based on this. This is called a civil report. It contains all of your
credit history information. It is addressed by the details of 'accounts'. It
contains a credit card or loan account, the status of their payment and the
sequence of the days left to repay them.
How CIBIL scores are calculated?
There are four important
things that affect your civil score:
1. Payment History: Filling or defining
late EMIs has an adverse impact on your civil score.
2. Credit Mix: Having a
merged cumulative and unsecured loan has a positive effect on your credit
score.
3. Frequent inquiries: Having too much inquiries about the loan has a
negative impact on your score. This indicates that your loan in the future.
4.
High Credit Utilization: High credit utilization limit indicates the increase
in debt over time. It does not have a good effect on the score.
How can you improve your CIBIL score?
If for some reason your civil score is not good, then
we are here to explain how it can be corrected:
- Always pay for your
outstanding bills from time to time. Banks do not consider late payments to be
good.
-Don't use credits too much. Prevent expenses.
-Make a balance between
secured loans like home and auto loans and unsecured loans such as personal and
credit cards. Too much unsecured loan is not considered good.
- Have a Joint
Account Holder, then look at the joint account holder. The negligence of the
joint account holder also has a bad effect on your credit score.
Surely, review
credit history from time to time. Keep an eye on your civil score. By regularly
checking the report, you can correct any mistake by the bank.
If you do not
want to get the chance of getting a loan in the future, you will get involved
in an effort to improve your civil score from today.
Tip: Filling or defining
late EMIs has an adverse effect on your civil score.
Until next time........
Take Care
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