Credit Score: A good credit score increases your chances of getting a loan and getting your application accepted. Your credit score is determined by your attitude towards repayment of bills.
Whenever you apply for a credit card or loan, the bank or loan institution first checks your credit score. The credit score shows whether the person applying for the loan will be able to repay the loan on time or not i.e. how much risk is there in giving the loan to that person. A good credit score increases your chances of getting a loan and getting your application accepted. Your credit score is determined by your attitude towards repayment of bills.
The CIBIL score ranges from 300 to 900. The closer your CIBIL score is to 900, the higher your chances of getting a loan or credit card. You have the free facility to check your credit score by visiting the CIBIL website.
Know its complete process step by step
Step-1: Go to the CIBIL website i.e. https://www.cibil.com/ and click on ‘Get Your CIBIL Score’ in the top right corner of the page. Scroll down for the free option.
Step-2: Here you will get your email ID including name (for this account it will be your username), password, ID proof (like voter ID, PAN card, passport number, Aadhaar), date of birth, pin code and mobile number have to write. After entering these details, click on Accept and Continue.
Step-3: Now in the next step your identity is verified. For this, you will get a one-time password i.e. OTP on the mobile number you have entered. After entering the OTP, click on ‘Continue’.
Step-4: Here, You are Enrolled will be written and it will take you to the new window. Now you have to click on ‘Go to Dashboard’ to check your credit score.
Step-5: In this last step the website will take you to myscore.cibil.com, here you will be able to view your CIBIL Score and CIBIL Report for free.
Once you have created an account, you can check your CIBIL score by selecting ‘member login’ at https://myscore.cibil.com/. To login here, just enter your e-mail ID and password.
These things affect the CIBIL score, this way you can keep the rating better
Delay in payment or default on EMIs has a negative impact on your CIBIL score. If EMI and credit card payments are made on time, then it improves the credit score.
Credit utilization ratio
How much of the total credit you spend is your credit utilization ratio. Suppose your credit limit is 2 lakhs and you have spent 40 thousand then your credit utilization ratio becomes 20%. Your reliance on excessive spending ie credit is considered to be high, which gives a bad effect. Never allow your credit utilization ratio to exceed 30 percent.
Maintain a balance between a secured loan (such as a car loan or home loan) and an unsecured loan (personal loan or credit card). This has a positive impact on your credit score.