The CIBIL score plays in a significant in determining your credit eligibility for a loan and a credit card. When an individual applies for a loan or credit card from a bank, the bank will look into various parameters to access your eligibility. The CIBIL score and credit score is one of the most important parts that the bank looks into viewing your applications. The credit score gains from all information that is, included in the CIBIL credit information report. You can find the details of your credit repayments, details of loan or credit card accounts under your name and various other personal information based on the credit information report.
If you would like to know CIBIL score and credit report then bureaus like CIBIL, Equifax and Experian are here, to tell you that. It’s important to review your CIBIL score in a year or 6 months to ensure no incorrect data, are captured in your report. However, it’s a good practice to consider the fact that you can notice trends and elements that are responsible for the increase or decreases in CIBIL score.
RBI has authorized companies which have registered with the credit information companies, provide a credit rating or credit score based on past loan performances that are reported by various member banks and bureaus. You can also check CIBIL score with PAN card, just need to open CIBIL website page, enter your name, contact, date of birth, gender and PAN card number. Along with providing address proof, registered mobile number and email ID. Accept their terms and conditions then press Apply button.
How CIBIL Score Impact in Our Report?
As we all know the range of score is 300 to 900 and if you want more privileges or service from your credit card, then CIBIL score should be high. We all should understand our score impacts so that can able to maintain and try to achieve a high score. If you have scored less 300, that case you are ineligible for a loan, between 300 to 450 shows not as good or as bad comment, and it’s like a warning for you that start paying on-time. Score 450 to 600 is a good sign and lenders can approve your loan application but in lesser credit limit. And last 600 to 750 is very good but 750 to 900 is perfect CIBIL score and financial companies also confidently give you loan or card because they believe in your credibility.
Which Habits Need to Control, To Make CIBIL Score High?
In earlier, we talk about impacts of CIBIL score and score ranges. Now we can talk about those habits, which we need to control for our benefit. Let’s meet with them one by one
#1. Punctuality of Repayment: Punctuality is one of the top-most habits that one needs to develop if wish to improve or maintain a good CIBIL score. Be regular and prompt to paying your credit card bills and EMI loans. A good CIBIL score looks promising to the lender as they notice your responsibility towards debt. There is nothing more important for a bank than seeing a timely, punctual payment record of an individual.
#2. Less Utilization of Your Credit Card: Most of us unaware of the consequences of high credit usage. As most of us think, if limit provided on credit card, so why don’t we can use it as much as we can, but it is wrong. The lenders don’t like people who use most of the time card for a single purchasing. The CIBIL score also gets damaged when you do so. That’s why a maximum usage of your credit card place you in a safe zone.
#3. Monitor Your Credit Expenses: Checking your credit report frequently for a high score, because it allows you to correct small mistakes before it damaged your CIBIL score status. In a case, you can see any error in your report, then visit CIBIL website and fill the form and upload certain documents.
#4. Use the Oldest Credit Card: We all know old is gold and the same thing goes with your credit card, the longer the history, the higher the score. For instance, if you have an account with a card that you have paid well, then you should not close it because you got it another card. You will be surprised how much impact such accounts have on the credit score.
#5. Don’t Become Loan Guarantor: If you want to make a high score, then say NO to loan guarantor. It impacts your score also when that person, makes delay or miss the payments. The lenders consider you the same, and it hit your CIBIL score.