Why CIBIL score is important: Check significance, benefits and where to view

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New Delhi: While applying for loans or credit cards you may have come across the term ‘CIBIL’ score being used by banking agents. CIBIL score is a metric devised by TransUnion CIBIL, a credit information company, which tracks 600 million individuals and 32 million businesses. CIBIL Score is a 3-digit number that sums up your credit history.

How is CIBIL score computed?

TransUnion CIBIL uses data from banks and financial institutions to create an individual’s credit profile.

The company counts the following lenders among its customers:

ICICI Bank
SBI
Indian Overseas Bank
HSBC
Union Bank of India
Bank of India
Bank of Baroda

CIBIL score can be used to predict potential borrower default, according to TransUnion CIBIL.

What is a good CIBIL score?

CIBIL Score ranges from 300 to 900. A score of 750 or above is considered more conducive to borrowing. An individual’s CIBIL score is determined based on:

Type of credit secured

A healthy credit mix of secured and unsecured loans helps to improve your credit score

Borrowing pattern

If there is an increase in your credit card balance outstanding or a jump in queries on your profile owing to the sanction of multiple loans, it may have an adverse effect on your credit score.

Loan repayment pattern

If there are instances of late payment or missed EMIs on your part, it may have a negative effect on your EMIs.

What is the importance of CIBIL score?

CIBIL score is used by banks and lenders to determine whether an individual is credit worthy.
A positive CIBIL score may result in more attractive loan rates for a borrower.

How to improve your credit score

An individual may improve their credit score by following the best practices listed below:

Repay loan dues on time
Don’t over-utilise credit
Ensure that you do not over utilise a certain loan facility, whether credit cards or mortgages
Be prudent while applying for a new credit facility
Keep an eye on loan accounts where you are a co-borrower or guarantor

How to check your credit score

Visit CIBIL official website: https://www.cibil.com/
Select ‘Get free CIBIL Score and Report’
Type name, email id, password
Attach ID proof. Enter date of birth, PIN code and ohone number
Click on accept and continue
An OTP will be sent on your registered number
Next enter OTP and click on continue
Now, go to dashboard, log in to your account and check your credit score
The user will be redirected to myscore.cibil.com
Now click enter your login details and check your CIBIL score

Where to check CIBIL score

Apart from the TransUnion CIBIL website, there are other options to receive a detailed report of your credit history for free:

Bajaj Finance
BankBazaar
Paisabazaar
CRED
IIFL
Axis Bank
HDFC Bank
Poonawalla Fincorp
Airtel

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