Our CIBIL score is a 3-digit number that reflects your creditworthiness and influences loan approvals & interest rates. Regular CIBIL score check online helps you manage finances better and boost your chances of getting credit.

What is a CIBIL Score?

A CIBIL score, which is between 300 and 900, is given by CIBIL - a credit bureau that assesses your creditworthiness based on your repayment history and financial behaviour. The lenders prefer a score of 750 and above for giving loans. The greater the score, the more are the chances of securing good loan terms.

Factors That Affect CIBIL Score Calculation

CIBIL looks at a number of factors in order to calculate a credit score. The key factors are:

1. Credit History (35%)

- Credit history plays the most important role as it shows your credit handling capacity.

- It displays the payment history (credit cards and loans).

- Overdue payments, defaults on loans, or defaulted EMIs can considerably reduce the score.

2. Credit Utilisation Ratio (30%)

- This is a proportion of credit limit to total available credit.

- If the utilisation ratio is high (over 30%), it reflects financial distress and lowers the score.

- Less than 30% utilisation ensures a good credit profile.

3. Length of Credit History (15%)

- The longer the credit history, the higher the score.

- Closing old credit accounts can shorten the credit history and hurt the score.

- Having long-standing credit relationships increases the score.

4. Credit Mix (10%)

- Having a good balance of secured (Loan Against Property, Used Car Loans) and unsecured credit (Personal Loans, credit cards) is good for credit health.

-Too many unsecured loans may imply higher risk to lenders.

5. New Credit Enquiries (10%)

- Every time you apply for a loan, the lender conducts a hard inquiry for reviewing your application.

- Multiple enquiries in a short period can lower the score.

-Soft enquiries (self-checks) do not affect the credit score.

How to Generate CIBIL Report?

It is recommended that you review credit reports from time to time in order to be aware of your credit health. Here is how to generate your CIBIL report:

1. Go to the official website of CIBIL.

2. Provide personal information like date of birth and PAN card number.

3. Select a subscription plan (a few of the reports are available for free viewing annually).

4. Verify using OTP authentication.

5. CIBIL report view and download.

In case of discrepancies, it is possible to file an appeal to correct the errors.

Tips to Keep a Healthy CIBIL Score

Having a healthy CIBIL score guarantees improved financial prospects and loan sanctions. Follow these important tips to increase creditworthiness.

- Pay credit card bills and loan EMIs on time.

- Keep the use of credit below 30%.

- Don't borrow many loans at the same time.

- Keep old accounts active in order to maintain long credit history.

- Have a mix of secured and unsecured loans.

Conclusion

A good CIBIL score improves loan approval chances and ensures better interest rates. With the knowledge of CIBIL score calculation, you can take initiative to maintain a good score. Monitoring and rectifying mistakes in the CIBIL report on a regular basis is also necessary. A good credit score projects you as a responsible borrower and makes borrowing easier.