CIBIL Score is a 3-digit numeric number that represents your creditworthiness. Credit score & CIBIL score is the same work with a different name. Credit Information Bureau (India) Ltd provides the CIBIL score.
CIBIL will help you to know about previous loan track, credit scores & more. If you are going to apply for a personal loan or credit card, your CIBIL score is an important factor. More than 720+ CIBIL is fair.
How to Check CIBIL Score for Free Step by Step
Here is the step-by-step process to check your credit score:
Step 1: Click on the official CIBIL website.
Step 2: Click on the “Get free CIBIL Score & Report” button.
Step 3: Now fill in your personal information like Pan Card No, Aadhaar No & pin code.
Step 4: Click on the “Accept & Continue” button.
Step 5: Enter OTP that is given to your mobile number & click on the “Continue” tab.
Step 6: Now, click on the “Go to Dashboard” tab.
Step 7: You can now see your CIBIL score on the myscore.cibil.com site.
You can upgrade to know the details analysis.
How to Calculate CIBIL Score?
A CIBIL score range starts from 300-900. Your trustworthiness will decide your credit score. If you have a good relationship with lenders, you will get a good CIBIL score. But if you fail to pay on time, your Credit score will down.
In the below chart, you can understand what is a good credit score & what is bad. This CIBIL score is changed every 2-3 months.
CIBIL Score Range
|CIBIL Score Range||Category|
|300 – 500||Very Poor|
|500 – 650||Poor|
Factor That Calculates CIBIL Score
Some key factors are important to major your CIBIL score:
On-time Payment: If you pay the previous loan on time, your credit score will improve. But if you failed to pay on time, your CIBIL score will go down.
Too Much Loan: These days you can get different types of loans easily like consumer loans, pay-later loans, credit cards & more. And most people take too many loans. This will affect your credit score.
Hard Inquiries: When you apply for a loan, the lenders check your CIBIL score. These inquiries will affect your CIBIL score. Too much hard inquiries are bad for credit health.
Credit Utilization Ratio: Let’s assume you have Rs. 50,000 credit card limit. So, you should use 30% of the limit that Rs. 15,000. It is called the credit utilization ratio (CUR). To maintain a good credit score, you should use 30% of your credit limit.
Benefits of Good CIBIL Score
Take the following advantage of a Good CIBIL Score:
Loan Approval: Good CIBIL score will help you to get a fast loan. If you maintain a healthy credit score, you will get instant loan approval.
Lower Interest Rate: You will get the benefit of a lower interest rate at a good CIBIL score. A lower interest rate helps you to reduce the monthly EMI. And the risk of default will be low.
Higher Loan: Your loan amount can be high for a good credit score. You will get a higher loan amount. Also, your credit limit will increase if you have a healthy score.
How to Improve CIBIL Score
Following the tips to improve CIBIL Score:
- Always repay the loan on time
- Utilize 30% of the credit limit
- Don’t apply for too many loans
- Close the previous loan before applying for a new one
- Monitor CIBIL score
Also Read: How to get business loan up to 30 lakh
What is the Good CIBIL Score?
A good CIBIL score means you can get instant loan or credit card approval. I know you also desire to know what is a good CIBIL score.
As we mentioned above, 730 to 750 CIBIL is a good score. You will get a loan or credit card with this credit score. But you have to follow the other 3 things:
Timely Payment: A good relationship can’t build within one day. Also, it will depend on trust. Pay your previous loan repayment on time. This will build trust with lenders. And you will get the result that is a good CIBIL score.
Apply for Too much Loan: Patience is the perfect word to build a good credit score. After rejection from other lenders, you should wait 2 to 3 months. But you don’t have patience. And you apply for a loan blindly and your CIBIL score goes down and down.
Close Previous Loan: Too much active loan is like a hidden enemy. You should be aware of your enemy from time to time. The same therapy applies to your active loan. Close your previous loan if you can effort to pay. This will increase your CIBIL score and you will achieve a good score.
FAQs on CIBIL Score
What are the different credit bureaus in India?
Credit bureaus are the credit agency that collects all your information from yours and with the lenders. There are 4 types of credit bureaus available in India:
1. Transunion CIBIL Score
2. CRIF score
3. Equifax score
4. Experian score
Is 720 a Good CIBIL Score?
720 is the average CIBIL score. 730 to 750 is a good credit score.
What are the means of a zero CIBIL score?
A zero CIBIL score means you have not taken any loans. This is called minas one or zero CIBIL.
Can I apply for a loan with a zero CIBIL score?
You are eligible to apply for a loan at a zero CIBIL score.
I want to apply for a credit card. How much CIBIL score will require?
A minimum 720+ CIBIL score is required to apply for a credit card.