Everyone requires a loan for their financial needs. It may be for education, home, medical or business, etc. If you are looking for loans or credit cards, then your CIBIL Score plays an important role. Nowadays all banks and NBFCs check the Cibil score of the applicant. Now let us understand every aspect of CIBIL.
|Tables of Contents:-|
|What is CIBIL|
What is the CIBIL Score
How to read CIBIL
How to check my CIBIL Score
Benefits of CIBIL Score
How to Improve CIBIL
How to achieve good CIBIL Score
Factors that affect CIBIL Score
CIBIL Report and CIBIL Score
CIBIL Score for personal loan, home loan, auto loan
Contact detail for CIBIL
What is CIBIL?
CIBIL or TransUnion CIBIL stands for Credit Information Bureau India Limited. It is India’s oldest Credit Information Company. Established in August 2000. It provides the score to the applicant based on his loan repayment and creditworthiness. Banks and NBFCs provide the data of its borrower every month to CIBIL.
What is the CIBIL Score?
Cibil score is a three-digit score ranging from 300 to 900. Based on the creditworthiness and repayment history of borrower CIBIL provides scores. General Banks and NBFCs consider CIBIl score above 725 as a good score.
How to check my CIBIL Score?
For checking the CIBIL score we require below-mentioned information
1.Name of a person
2.Address of person
4.KYC documents like PAN card, Adhaar Card, Voter Id, etc
6.Date of Birth
Benefits of CIBIL Score
Bank and NBFCs check the CIBIL score of applicants before approving their loan application or credit card. A good cibil score is having below mentioned benefits
1.Fast Loan Processing:- If an applicant is having a good Cibil score then his loan application or credit card will be processed faster and hassle-free.
2.Rate of Interest:- Bank and NBFCs charges a lower interest rate on loan amount form the applicant who is having good Cibil score as compare to the applicant having lower cibil score
3. Concession on Interest rate:- Apart from lower interest rate Bank and NBFCs also provide concession in processing fees, rate of interest and review charges, etc.
How to Improve the CIBIL Score?
CIBIL score is all about the creditworthiness and payment history of any loan or credit card of an applicant. There are following ways by which you can improve your cibil score
1. Installment payment:- The every First and most important is making the payment of loan installment on time. Avoid delaying in loan installment.
2.Limit Utilization:-Whether you are having an Overdraft facility or cash credit facility try to keep the outstanding balance below the sanctioned limit and make proper turn over in the account .monthly interest to be served within 15 days on demand.
3.Credit card Limit:-if you are having a credit card, try to spend not more than 40 % of the limit monthly. For eg: If you have a credit card of limit 200000 try to spend not more than 80000. Under the utilization of card shows, you do not credit hungry.
4.Guarantor: – As per bank guidelines a guarantor is equally responsible for repayment of loan amount timely. Try to be a guarantor of a person who’s having good creditworthiness and reliable.
5. Variety of credit facility:- Only one type of credit facility negatively affects credit score. It is good to have a good credit mix and maintain proper credit disciple.
6. Avoid applying for loans or credit cards at multiple banks at the same time. It shows the applicant is credit hungry.
7. Check your cibil score at regular intervals and if any error or wrong entry appears in your cibil report. Rectified it before applying for a loan or credit card.
What are the factors that affect CIBIL Score?
If you are looking for a loan or credit card. A good cibil score is always desirable form banks or NBFCs.
1. Credit disciple:- if you are looking for a good credit score, it is important to maintain good credit disciple and regularly pay your installment on time.
2.Multiple Loan application:- If you are looking for a loan or credit card, it is advisable not to apply for the same at multiple banks and NBFCs simultaneously. It shows the applicant is credit hungry and negatively affects your credit score.
3. Limit Usage:- Overspending and fully utilizing your credit card limit show that you are dependent on the credit limit monthly. It is advisable to spend your card limit to 30-40 %. It serves the installment or EMI on time.
4. Long credit history:- Cibil score is dependent on your credit disciple, creditworthiness and payment of EMI. Having long credit history from bank and NBFCs with regular payment of installment, increase your cibil score.
How to read CIBIL Report and CIBIL Score
Based on the following parameters Cibil generates a report called Cibil report and provides a 3 digit score ranging from 300 to 900.900 being the highest score. Cibil report
1.CIBIL Score:- Based on your credit history, CIBIL generate score ranging from 300-900.
2. Name:-It contain name of applicant.
3.KYC:- This section contains your PAN card, Voter Id details, etc.
4. Address:- This section contain your residential address and communication address
5.Credit Details:-This section contains your loan and credit card details which include EMI, ROI, Sanction limit, Outstanding Balance,
No credit history:-
If you have not taken any loan from bank and NBFCs and you are willing to apply for the same. In this case, your Cibil score will be 0, -1 or NA
Cibil Score for personal loan, home loan, auto loan?
Every bank or NBFCs have their cibil score cut-off as an indicator for accepting or rejecting the loan application. However, if you are looking for a personal loan, home loan or auto loan then it is generally advisable to have a cibil score above 701. Score above 725 is considered as good whereas the cibil score above 800 is considered excellent.
Cibil score from 300 to 500 is considered as poor
Cibil score from 501 to 700 is considered as average
Cibil score from 701 to 800 is considered as good
Cibil score above 801 is considered an excellent
Contact detail for CIBIL
Consumer Helpline Number: +91 – 22 – 6140 4300
Fax: +91 – 22 – 6638 4666
REGISTERED CORPORATE OFFICE
TransUnion CIBIL Limited
(Formerly: Credit Information Bureau (India) Limited)
One Indiabulls Centre, Tower 2A, 19th Floor,
Senapati Bapat Marg, Elphinstone Road,
Mumbai – 400 013.
Customer Walk-in timings (Mon – Fri): 10:00 am to 06:00 pm
Tel: +91 – 22 – 6638 4600