CIBIL score and credit score are essentially the same thing and are interchangeable. Your credit score is one of the most important numbers in your financial life. It can determine whether you’re approved for a loan, and if so, at what interest rate. A good credit score can save you thousands of dollars in interest over the life of a loan. But what is a good credit score? And how do you get it? In this blog post, we’ll answer those questions and more. We’ll also show you how to check your CIBIL score and credit score for free.
As we will be discussing a lot about CIBIL in this article, we should first find out what the cibil full form is. cibil full form is Credit Information Bureau (India) Limited.
CIBIL score and cibil full form
Now that you know what the cibil full form is, let’s continue discussing your credit score. Your CIBIL score is a three-digit number that represents your creditworthiness. It is based on your credit history, which is a record of your borrowing and repayments. The higher your score, the more likely you are to be approved for a loan or credit card. A CIBIL score is used by lenders to assess an individual’s risk of defaulting on a loan.
CIBIL scores range from 300 to 900. A good score is considered to be above 750. A score of 700-750 is considered fair, and a score below 700 is poor. If you have a poor CIBIL score, you may still be able to get a loan or credit card, but you will likely pay a higher interest rate.
CIBIL score can be improved by making timely payments on all debts, maintaining a low credit utilization ratio, and diversifying one’s credit portfolio.
How to check CIBIL score online- a step-by-step guide
There are many ways to check your CIBIL score online, such as the Cibil Score App. However, not all of them are accurate or provide the same level of detail. Here is a step-by-step guide on how to check your CIBIL score online:
1) Visit the website of any one of the four credit bureaus in India – Equifax, Experian, Highmark, or CRIF Highmark or the Cibil Score App.
2) Register on the website by providing your personal details.
3) You will be given a user ID and password. Use these to log in to your account.
4) On the dashboard, you will see your CIBIL score along with other important details like credit utilization ratio and payment history.
Factors that positively affect CIBIL score
Many factors positively affect the CIBIL scores. Payment history is the most important factor, followed by credit utilization, credit mix, and length of credit history.
- Payment history
Good payment history means that you are consistent in making on-time payments for your debts and other financial obligations. Lenders then know that you are a responsible borrower and are likely to repay any new loans or lines of credit that you may be offered.
- Credit utilization
This refers to the amount of available credit you use at any given time. It’s generally best to keep your credit utilization below 30% so that lenders can see that you avoid maxing out your credit cards and putting yourself at risk of defaulting on your debt repayments.
- Credit mix
Credit mix is also a helpful factor in boosting your CIBIL score. This refers to the different types of credit accounts that you have active on your credit report. Having a mix of installment loans (like auto loans or mortgages) and revolving lines of credit (like credit cards) can show lenders that you are a well-rounded borrower who knows how to handle different types of debt with responsibility.
- Length of credit history
A long credit history is advantageous in improving your credit score, provided that you show consistent repayment behavior.
When improving your financial situation is the goal, it is essential to understand your CIBIL or credit score. Knowing where you stand financially can assist in making better decisions to improve your financial health. Several resources are available online such as the Cibil Score App that helps you track your credit score for free. By taking advantage of these resources, you can put yourself on the path to financial success.