The RBI has mandated that credit bureaus like CIBIL report should provide one free credit report in a year for an individual. The banks and non-banking financial company obtain an abridged credit report and CIBIL scores by making an enquiry on your CIBIL profile while judge your loan or credit card application.
To get a CIBIL report is just a click away and the entire process is paperless. Just log in to the official CIBIL website and upload the required documents for example your Identity proof, Address proof, your personal information and other relevant facts. After filling the form you will be redirected to the authentication page, they will ask few questions regarding your credit history, then CIBIL will send your CIBIL report through an email within a day. In a case, your authentication fails, don’t worry, you will receive a hard copy of your CIBIL report by postal address you have shared.
You can check your CIBIL score via Equifax, CIBIL, Experian and High Mark services and try to up your score. It is a three digit number usually, ranging between 300 to 900. Every month banks and non-banking financial companies furnish their reports to CIBIL, according to these calculate the CIBIL score for individuals.
How To Understand Your CIBIL Score?
As we have explained that range of score is 300 to 900, and in a case, have scored less than 300 or above 750 or accurate 900, then what will happen to you.
A Score Below 300: If your CIBIL score is less than 300, then you will not get any loans. The leading banks and financial company’s, are not able to provide you loans or credit cards
A Score Between 300 To 450: Though this score is not as bad as previous one, and not worth much your credibility. You should take it as a warning and start paying EMIs on-time to improve it before applying for a loan.
A Score Between 450 To 600: With this score, your loan could get approved, in some banks you can also get credit cards with lesser credit limits. It’s an average score.
A Score Between 600 To 750: This score is very good, and all banks will be ready to give you loans and credit cards, although you might not be able to negotiate a competitive rate.
A Score Between 750 To 900: If you have a credit score in this range, it means you have maintained your financial record on a perfect track. The banks will not give you loans for a larger amount but will also be ready to negotiate a good deal. A credit card with higher credit limit will be offered to you along with a great deal of cash back and reward points.
What Is A CIBIL Report?
The CIBIL report is a document that contains your credit scores as well as a detailed list of previous borrowings such as loans and credit cards. These financial institutions send the data regarding existing clients, to CIBIL and all of these data are compiled to form your credit report and by extension your credit score. In starting point, as we have already discussed, that how can you check your CIBIL report through CIBIL website, you can check using net banking site also because many leading banks provide that link if you can request to banks, to show your CIBIL report so that you are aware of it and try to improve
How Can You Improve Your CIBIL Score?
If your credit score is low then to get credit cards or loans, firstly you should improve your CIBIL score. Your question might be how? It’s a simple step, just have a look
Repayment On-Time: Your credit card or loan repayment history directly impacts in your CIBIL score. If you are a defaulter on payments, loans, EMIs and more, it will have a negative effect on your report. On the other hand in previously if you have, paid all the EMIs and bills on-time so it will give you good score
Pay Bills On-Time: This is the single most important thing which can help you to improve your CIBIL score. You can pay all credit cards, EMIs and loans payment on time, it will improve your score. Because even a single missed or late payment affects your score adversely. Your payment record is also noticeable when we talk about individuals CIBIL report.
Ensure Your Credit Limit: Your credit limit and spending habits with the card is also matters for CIBIL score. If you think all the purchase you can do with only a credit card, then it’s not a good habit. Because of this, you can be exceeding your limit, and it will directly hit your CIBIL report.
Do Not Try Multiple Credit Cards Or Loans At The Same Time: When you apply to multiple lenders at the same time, for loans or credit cards, it shows that you are hungry for a credit card. Lenders become nervous about your ability to repay and because of this kind of behaviour might reject your application, and each rejection decreases your CIBIL score.