CIBIL score is a three-digit number ranging from 300 to 900, which determines an individual’s creditability to get a loan or credit in future. The score is generated by Credit Information Bureau based on a person’s credit repayment behaviour along with other factors. While 300 is considered as the lowest or poorest score, 900 is said to be the highest score, which decreases the chances of a loan or credit application getting rejected. Experts say that a score above 700 is considered good enough by banks and other lenders to approve the loan or credit request.
CIBIL score online checking free:
Any individual can check their current CIBIL score online free and make efforts to improve the score if it is going low. The CIBIL report evaluates multiple factors to generate a specific score.
Here are those factors which are considered for a CIBIL score:
Payment History – We all have got scolded by our parents for not paying our bills on time and it is true in today’s world more importantly than ever. Late EMI payments or default repayment history can leave a negative mark on your credit report forever. Instant gratification will have long term repercussions. Negative factors generally remain on credit reports for at least next 7 years, though bankruptcies records can stay on for longer.
Debt Level – By now, you might have understood that each borrowing contributes to your credit history. Isn’t it right? Here debt level is determined as how many loans you have taken simultaneously and how regular you are at paying them back. Hence, it is significant to make a balance between your income and borrowings to make sure that you repay them regularly.
Span of Credit History – A good credit history is not created overnight and thus, takes time. In some cases, it might even take several years to build a good score, and sometimes over 10 years to build an excellent one. Therefore, it is completely upon you how well you manage your credits and finances.
Inquiries – People might dominate this point, but, as a matter of fact, your CIBIL score can also get affected by frequent loan or credit card inquiries as it reflects that you are in high need of finance and don’t have enough income to meet those expenses. Multiple frequent inquiries can impact a negative impression over your credit score and the latter may not even know.
Mix of credit – Mix of credit signifies that how well you are able to manage various types of loans or credits simultaneously. This is basically one of the significant factors considered by the lenders to understand your experience in the borrowing and repayment game.
To check the score, visit https://www.applykaroo.com/cibil-credit-score.php
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