The common questions you might have in mind regarding CIBIL Score
What is CIBIL score? What is the importance of it? How can it be increased? How it might decrease?
Why we don’t count the CIBIL score? If you don’t know it yet then let’s find out everything thing you need to know about your CIBIL score.
Considering the fact, CIBIL score is a very important factor that the lenders look at while they evaluate your loan application. Hence it’s important for you to understand how this score is calculated, although there is a proprietary algorithm that decides your CIBIL score yet the most important element of the score composition is based on the loan payment behaviour of individuals.
Let’s take a look at what exactly the CIBIL score is, and how it is calculated.
What is CIBIL score?
A CIBIL is a three-digit numeric gist of your credit history which is derived by
using your account details and by the enquiry is made by you section. Other
than this your CIBIL report also carries the details of your credit cards and
their payment statuses and all the outstanding accounts. The CIBIL score
shows your creditworthiness which is based upon your borrowings and
payment history shared by the lenders. If your score ranges from 300- 900
and the higher your score, better becomes your chances of getting a loan
sanctioned. In fact, if we see the history then 79% of the loans are approved
to consumers with a score of 750 and higher.
How is the CIBIL score calculated?
There are four major factors that impact your CIBIL score:
🔺 Multiple enquiries: If you have made a lot of loans then that might
create a negative impact on your score as it shows that your loan burden
may go up in the near future
🔺High credit utilization: Another thing that affects your score is the high
credit utilization limit which indicates a rising debt burden over time
and may negatively impact your score
🔺Payment history: If you have the habit of making late payments or
defaulting on your EMIs has a negative impact on your score.
🔺Credit mix: If you have the right balance of makes between the secured
and unsecured loans then it’s likely to have a positive impact on your
How to work towards a high CIBIL score?
Your CIBIL score is based upon your creditworthiness and your past payments but it also impacts your future access to credit. To make sure that you have easy access to the credit in future what you do today can help you build a stronger and a lot healthy credit footprint. You are a few ways to help you increase your score:
🔺Make sure that you always pay your dues on time.
🔺Do not use too much of credit, do make sure that you keep your credit balance low.
🔺Keep in mind that you have a healthy mix of your credit which should include both secured and unsecured loans in an equal ratio.
🔺Keep reviewing your credit history throughout the year so that when you need a loan you don’t have to look way too far.
Why we don’t consider CIBIL?
We at QuickCredit.in, aim to stun the way traditional banking is done. We don’t want a low cibil to be a major bugbear for potential customers. With aided technology and ease of KYC, credit analysis has goes beyond cibil report. We also strongly believe that a credit report is only an estimation of how a customer might behave but is still not something that can be fully trusted, there are other factors and reasons attached to every cibil. As discussed above, with advanced technology and data points we disburse the loan in just 20 mins. Entry-level loans can be very well fulfilled by us. Waiting for salary to be credited? Get an early salary from us. Want to buy a gift or a cell phone for yourself? Don’t go through embarrassment of borrowing money from your friends and relatives, just get instant cash within 20 mins from us. Get instant cash loans, salary advance loans, travel loans, skill loans, emergency loans from us.