You must have heard the term ‘Credit Score’, before! But, are you aware of the term in detail and how is it helpful to you. What are the different factors, involved in the determination of CIBIL and who calculates it and other important factors are associated with CIBIL. The DealsofLoan brings the detailed information on CIBIL and help in the analysis of CIBIL.
Know the term ‘CIBIL’
Credit score or CIBIL is an acronym for Credit Information Bureau (India) Limited. Established in the year 2000, this CIBIL is a three digit number, which is an indicative of a person’s credibility. The CIBIL is an indicative number, which determines the credit behavior of a person and thus can be considered as the marking system by the financial institutions as given to you. The more is the score, the better it is for your credibility.
How does CIBIL Impact you?
Since, the CIBIL Score is an indicative of a person’s behavior in financial aspects, it determines how much trustworthy, a person is when it comes to the money managerial skills. The highest score at CIBIL indicates, a person is having a good financial management and thus a person can be trusted, when it comes to the repayment of debts, etc. Similarly, a low score at CIBIL indicates a bad behavior of a person and thus raises serious questions on the financial credibility of a person. The result of good CIBIL Score is that the banks and other lending institutions welcome a person, for loans and other such without much of a hesitation and also offering a better chance to the person to negotiate on rates of interest from the lending institutions, while the person having a low CIBIL score, are most of the times avoided for loans and if any lending institution, still offer loans, the chances of the higher rates of interest being charged are more likely.
How CIBIL Score is calculated?
CIBIL Score has been calculated through the financial institutions and other lending unions. The credit bureau ‘CIBIL’ is solely responsible for the determination of the CIBIL Score of the person, based on the inputs as given by the NBFCs and Indian banks. Based on different factors, the Credit bureau generates a credit report, which can be offered to the person, either free or with the payment of a nominal amount. There are three different agencies, which carry out the task of the calculation of the CIBIL Score are CIBIL TransUnion, Experian & Equifaxand High Mark.
The factors & process in the calculation of the CIBIL Score are as laid below:
- As soon as you make a transaction, the bank sends the details of the transaction to these three agencies. Also, the sending of the details of the these three credit agencies has been made compulsory by the RBI and thus the sole responsibility of keeping these credit bureau agencies up to date, lies in the hand of the banks and financial institutes.
- After receiving information about your transaction details, the credit agencies start collecting other information about your financial habits from various other banks and financial agencies.
- After the collection of full information, the CIBIL Agencies proceed towards the formulation of the report called as CIBIL Score report, which is always updated once your credit history goes into the change.
- The banks can always approach any of the CIBIL agencies, if they need to check the Credit score of yours.
Calculation of Credit Score
The calculation of a Credit Score is primarily based on below factors:
- Credit card utilization: The way you utilize your credit card is one of the deciding factors in the calculation of a credit score.
- Payment history: The payment is just another factor, which determines how the credit score of a person will be. The timely payment of all dues and EMIs is a juice to the better credit score of a person.
- Age of credit lines: The age of the credit lines is just another factor for the calculation of a accredit score.
- Total number of accounts: The total number of accounts is an important factor in the determination of the credit score. Avoid keeping, too many accounts under your name.
- Entries for credit inquiries: If you are enquiring for the credits through the lending agencies, too frequently and also are being rejected, will negatively affect your credit score. Pay attention at this factor.
- Negative status account: Another deciding factor in the calculation of a Credit Score.
Why should you check your CIBIL Score on a consistent basis?
The DealsofLoan advise you to check your CIBIL Score on a consistent basis. Keep an eye on the Credit Score of yours to judge your performance in the eye of the financial agencies, and also keeps you updated if there is any wrong doing. By timely checking of your credit score, you can better analyze your credibility, and if you consider any error is being made by the credit agencies, you can notify the same to these agencies for reconsideration, thus keeping you ready for a better deal during the times of needs.
Is CIBIL the deciding factor while taking a loan?
While, many people have their opinion that CIBIL is the deciding factor while applying successfully for the loan; the DealsofLoan would like to inform that this isn’t true!
While, the CIBIL Score is one of the deciding factors while applying for the loan, successfully, this alone is not the deciding factor. There are many other factors, which comes to the prominence, when it comes to the successful application of the loan. The CIBIL Score is just an indication of the credit history of the person and helps the banks to decide whether to approve/disapprove the loan application. There are many in the country, which don’t have any CIBIL History, but still are successful in getting the loan, approved. Considered among one of the important factors, this is not only the factor, which is considered while taking a loan.
How to check my Credit Score at DealsofLoan?
Checking credit score through DealsofLoan is quite an easy as compared to various other Fintech websites. Here are the steps:
Visit our website www.dealsofloan.com
Select the option, which mentions ‘Credit Score’
You can also visit our dedicated page for checking credit score www.dealsofloan.com/check-credit-score
Fill in the details, required at each step/Fill in the form, which gets available after clicking the link
Enter all required fields, most importantly email and contact number (which is being used at various banks in order to match the records)
Sign up is also available through some social media platforms
Sign in to view your CIBIL Score report
Once you sign in, you can view the summary of your CIBIL Score.
Why to choose DealsofLoan for your CIBIL Score Card?
The DealsofLoan offer various benefits as compared to other websites, which offer the same facility of checking Credit Record. Here are those advantages:
Your credit score through us is accurate and intuitive
We offer you customized solutions/recommendations on how to improve your credit score
The DealsofLoan monitors your credit score
We periodically send you credit score, to help you monitor your credit score
We help you select the best credit card to improve the credit score
All data as entered by you, will not be misused in any case
We offer you the Credit Report absolutely free of cost, with no hidden charges!
Why Credit Score went down?
Most often you may see that, your credit score goes down. While, there may be several reasons for the same, the DealsofLoan brings in those factors, which are crucial factors in getting your credit score going low:
Having high balances on your credit card, also negatively affect the credit score
Being late in paying off your credit card dues
Being late in paying off your EMIs
Your account being sent to collections deptt can negatively affect your credit score
Filing for bankruptcy can drastically affect the Credit Score of a person
When you request your credit card to close, with the outstanding balance, your CIBIL Score goes to zero.
Closing request of your old credit cards can affect your CIBIL Score
Applying for too many credit cards in a short span, can negatively affect your score
Applying for loans in high number within short span of time, can again affect your CIBIL Score
Having only a single type of credit card can negatively impact your CIBIL Score
How to improve/maintain your credit score?
If you have been rejected for your loan application, there are chances that your Credit Score is perhaps, hitting the bottom deck. In order to progress ahead and help things improve, we recommend you to check your credit score through our free CIBIL Score Facility and proceed as per our best suggestions and recommendations. You can also maintain the good credit score, if you already have a good Credit Score. Start laying a solid foundation of your credit score with our tips and analysis:
Check your credit report for any mistakes and get them corrected. Apply this process on a periodic basis.
Make sure that you pay your credit card bills and loan EMIs, on time.
Do not apply for multiple loans and too many credit cards simultaneously.
The DealsofLoan advises you to Keep your debt-to-credit ratio lower than 50% across all credit cards.
Ensure that you do not have multiple outstanding unsecured loans or credit cards.
Too many rejections in loan applications in short time, also decreases the Credit score. Pay attention!
Try to take some short term loans, and pay its EMIs well on time, to drastically improve your CIBIL Score.
Score Range of CIBIL
Your credit score will be in the range of 0 to 900. Here is the guideline as a reference, to know what your score indicates:
CIBIL Score of below 300: You are considered as a very risky bet for banks and other lending agencies. Also, You don’t have a sufficient credit history for the banks and other banking agencies to judge your credibility.
CIBIL Score of 300 – 449: This is a real poor credit score. You should not miss your EMIs and should focus on payment of credit card dues well on time!
CIBIL Score of 450 – 599: You are placed at just at the medium range. Some banks can consider your loan application; however, some may avoid you!
CIBIL Score of 600 – 749: A good score to have. Banks will be ready to offer you a line of credit for sure!
CIBIL Score of 750 – 900: The highest bracket range. Banks consider these people with high priority. Such a range indicates a good volume of your credibility and that too, all in the positive side. You may get too many loan offers and at attractive rates of interest along with several Credit Card offerings!
FAQs on CIBIL Score
Here are some short FAQs on CIBIL Score:
Can everyone access my CIBIL Score?
CIBIL Score is considered as personal information of a person. Only the banking agencies can access your CIBIL Score, apart from you. No one else, has right to access your CIBIL Score.
Can CIBIL delete or make changes in my CIBIL Score?
CIBIL does not have any right to delete or make changes as per the will. They are just collecting data as fed by the banking agencies and are displaying your score.
What CIBIL Score is best for me?
The more, the merrier! Try to keep your score above 725.
The DealsofLoan offers a free checkup on your credit score. We offer an easy and quick way to access your CIBIL Score, absolutely free of cost! Proceed ahead and check your CIBIL score in the quickest ever way!