According to CIBIL what is a credit score?

A CIBIL credit score can be explained as a 3 digit numeric outline of your credit history. The score is calculated by taking into account your complete borrowing details, history, repayment pattern and default instances. It is scaled in a range of 300 to 900 points.

 The higher the point which is close to 900 better will be the chances to get the loan from a lender. A good score is important to get a loan with ease. Lower score which means close to 300 indicates a discrepancy for borrowings in the past.

Importance of a CIBIL credit report

A CIBIL credit report contains all the details pertaining to your borrowing history and its repayment discipline. CIBIL credit report is very important nowadays as it contains your past and present credit history. Banks and FI’s allow loan to a borrower on the basis of CIBIL credit report.

A good credit score helps borrowers to get loans easily from banks. You can inculcate financial discipline by analyzing the credit report. It helps borrowers to avoid the debt trap. You can stay away from extreme financial leverage by analyzing the credit report properly.

Keep a tab of your credit Score:

It is very important to keep tabs on your credit score, especially if you are aiming for a loan anytime in future. Never default on EMI payment or repayment of credit card dues, don’t over leverage your financial position, avoid multiple unsecured loans on a single profile Closing a loan with a regular repayment shows that you are a disciplined borrower, so set a due date reminder on your mobile to avoid delay.

 If you need multiple loans for various purposes, then try to distribute the same by borrowing in the name of other family members and never forget to take a “No Dues Certificate” while closing a loan. It is also important to check the same in an updated CIBIL report after the loan is closed.