Credit Information Bureau India Limited (CIBIL) Score is a bank’s assessment of an individual’s credibility based on their credit history.
In simple words, CIBIL Score is a credit report of your credit history and pay back patterns. The value ranges from 300 – 900, higher the score, greater the odds of availing loans or credits.
Benefits of a good CIBIL Score
A healthy credit history reflects on the CIBIL Score of an individual, for strong financial planning you need to have an urge for high CIBIL Score to get a credit card with better discounts approved or avail best interest rates on consumer loans, education loans, wellness loans, lifestyle loans, loans with security or loans for medical purposes.
While a bad score(<600) impacts your chance of getting approvals on loans and credit amounts, an ideal(>750) CIBIL score can ensure you exclusive benefits such as,
- Better Interest Rates
- Higher Loan Amounts
- Extended Loan Tenure
- Premium Credit Cards
- Quick Approvals
Tips to improve the CIBIL Score
As you must have noticed by now, a consistent effort and responsible behaviour is a must, to keep up or improve your CIBIL score.
Here are few tips that can help you plan your financials,
Strictly No Defaulting – Don’t default on your credit card or loans. It reflects on your credit history and impacts your ability to avail loans or other credits in the future.
Build a +ve Credit History – It shall only be a senseless act if you shy away from a credit card, rather use the credit limit wisely to build your credit score and avail financial benefits to plan a balanced business or private life.
Pay back on-time – The pay back patterns are taken into consideration while evaluating your credit score, so ensure to pay back the complete credit and definetly on-time which can bring a positive influence on your credit score.
Too Many is dicey – Availing too many credits at once impacts negatively on your credit score, be responsible while applying for loans. Keep a healthy mix of secured and unsecured loans to maintain a healthy credit history.
