What CIBIL Score Is Good: 5 Things You Need To Know. It is because this attracts the chances of getting the loan.

Do you want to apply for a loan? If yes, then the CIBIL score plays an important role in this. RBI licenses four credit bureaus to offer credit scores in India. Among all the bureaus, the CIBIL score is the most well-known. The phrase ‘CIBIL score’ usually comes with “credit score.” It refers to a score between 300 and 900, in which 900 is the top score.

A higher score attracts the chances of a loan application acceptance. Credit scores are crucial since they show the riskiness of a borrower.

The report is also referred to by the name of CIR (Credit Information Report). For getting this report, apply on the website for CIBIL. After receiving the CIBIL report, studying the CIBIL report is crucial. Its purpose is to ensure the authenticity of the data contained in the report.

But, it is crucial to understand the factors that affect credit scores. It offers an individual the chance to increase their score over time.
Here, in this blog, we will discuss the facts that impact a person’s score applying for a loan. Here we go with What CIBIL Score Is Good: 5 Things You Need To Know

PAYMENT HISTORY

This factor is a contributing factor up to 35% score. How often and on time the payment of your debts impacts your credit score the most than any other aspect. It indicates whether you’re able to repay the loan by the lender or not.

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Utilisation Of Credit

It is one factor that affects 30% of your total score. According to the guidelines, one should not exceed 30% of their available credit limit. It is because this shows an adverse sign for lenders. Being in debt too often can hurt your score on credit.

Credit History Length

It makes the 15% part of your score. It consists of your credit account with the oldest balance and the average of your accounts. The longer your credit history is, the better your credit score. It indicates your experience handling different portfolios like various loans, credit cards, etc.

Credit Mix

It accounts for 10% of your score. A person has a diverse portfolio of loans. It may be installment loans, mortgages or credit cards, etc. It will improve your credit scores.

New Credit

It is 10 percent on your score. A high volume of inquiries affects your credit scores. And most within a short period could affect your credit score.

An institution considers a person with less than 600 as a high credit risk.

If you have a credit score below 750, there is a need for credit repair services. It is to assist individuals in improving their credit rating. To better your financial status, we commit and so always eager to help you in this regard.

To improve CIBIL Score, you may contact our experts. Our existing clients consider us the best financial advisor in Patna.

AUTHOR: PAWAN KUMAR, SENIOR FINANCIAL CONSULTANT

(More than 15 years of experience)