About Credit Report
In last five years, there have been many changes in the loan market. To get a loan, it has become very important to keep a record of your credit score issued by the credit reporting agency CIBIL. If you want to take any type of loan like home loan, personal loan, car loan and business loan, then it is necessary to maintain a god credit score.
What is a Credit Score by CIBIL?
A Credit Score is a 3-digit numeric outline of your credit track. This number is computed by taking into account all your borrowing details, history, repayment record, any default instances, etc. This score ranges from 300 to 900 points. If your score is close to 900, then there are good chances of you to get a loan from a lender. Having a good credit score makes it simpler to qualify for a loan. If your score is near about 300, then it indicates the discrepancy for borrowing in the past.
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Why CIBIL credit report is important?
- It defines your past and present credit history.
- A person having a poor credit score is not eligible to take any loan except Gold Loan.
- It helps the borrower to stay away from any debt trap.
How to analyze Credit Score?
You can view your credit score online by visiting the website of CIBIL. Usually, banks prefer to give a loan to a person who has a high score ranging from 750 to 800 plus. In case, your credit score is 300 to 500; then there are fewer chances of you to qualify for a loan.
What affects the Credit score?
- Default as a cosigner
- Irregularity in repayment of loan
- Cheque bounce in the past
- Many unsecured loans such as the personal loan
- Default in paying of Credit CardBill
- Several applications for an unsecured loan can also be negative for credit score
How to keep tabs on your credit score?
Below are some points that can help you in Keeping track of your credit score:
- Pay your monthly installments on time without any default.
- Don’t borrow beyond your financial condition.
- Don’t go for multiple loans
- Take “No Dues Certificate” while closing the loan. Also, check your updated credit report after closing a loan.
Credit score is the most important factor that lenders check while offering a Loan. Once your credit score is distressed, it is very difficult, and time taking process to improve it. Therefore, avoid taking a loan unless you really need them.
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