If there is one thing that bothers both the bank loan seeker and the bank officer, it is the CIBIL score.
There are many people on both sides whose lives have been ruined by an incorrect CIBIL score.
CIBIL is your credit utilization scorecard. Horoscope of loans you have taken so far.
Banks check our civil horoscope before approving our loan or credit card application.
CIBIL prepares such horoscope for all loan customers i.e. CIR Credit Information Report and CIBIL Score.
Even if you have never taken a loan before, if you tell us your PAN number, they will take everything about your details.
What is CIBIL score?
- CIBIL (Credit Information Bureau [India] Limited) is a Credit Bureau recognized by the Reserve Bank of India.
- CIBIL silently tracks all credit activity related to personal loans, credit cards, and other institutions.
- Cibil collects information like the history of loans, current status, etc.
- Banks and financial institutions registered as members of CIB regularly submit to CIB the credit history of their borrowers, the current status of loans, etc.
- Based on the information provided by these companies, Cibil prepares a horoscope for every person and company in India.
This is the CIBIL score.
Banks buy your Cibil Horoscope for a fee. You can check your CIBIL score by entering your unique identity (PAN number, passport, voter card, driving license, ration card) without knowing.
At present, there are a total of four credit bureaus in India along the lines of CIBIL. CIBIL (Credit Information Bureau (India) Limited) is the most popular among them. All credit bureaus are licensed by the Reserve Bank of India.
You too can get your Cibil Score online for free. Here is the Cibil web link Free CIBIL Score and Report. These sites ask you to enter a lot of information including your mobile number. If you give it, you will get a CIBIL score.
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What is the minimum CIBIL score to get a bank loan?
CIBIL score ranges from 300 to 900. A score above 650 to get immediate sanction for a loan or credit card.
The higher the CIBIL score, the more likely you are to receive benefits such as lower interest rates. Skip to the next para (3) if you know the below CIBIL score details.
300 – 500 Cibil Score: No Chance. You won’t get a bank loan. In Madurai, anyone lends with love. Access there.
550 to 600: You are borderline. The focus should be on repaying loans and refining card usage. Discipline in a small debt, reward in a big way. (ie get more credit). Below is a guide (of 3) just for you. Read that too.
650 to 700: When you get 650 credit points, doors open to get bank loans. A few banks may offer loan services with higher interest rates.
750 to 800: This is a good Cibil score. Banks will lend without a second thought. It shows that you are a responsible person. Show it to your dad. He will be proud.
850 to 900 Cibil Score: Humble Salutation. The community is a big place. You can access all the services and facilities of banks, with as many concessions as possible, sometimes even for free.
How to fix my bad CIBIL score?
- 400, 420 cannot be fixed. If 550+ try below.
- Pay installments and interest on your loans on time.
- There should be no outstanding balance on the credit card.
- Hang up as soon as the bill or call arrives.
- They give 35% weightage for regular loan repayment.
- Next is a 30% weightage on how much you use your credit limit. If you have always kept the overdraft of 10 lakhs as 10.05 lakhs empty then the CIBIL mark will decrease.
- Bonus 15% weightage if you are a long-time borrower but have regular repayments
- A 10% weightage for mixed loans.
- If you are a person who goes up and down from banks, often asks for loans, and eats biscuits and cakes, it is enough. Banks will often look for your horoscope in CIBIL and hence your CIBIL Mark will go down.
- This means that even if you make an inquiry with your bank on behalf of the loan, CIBIL will be alerted. Write it in your score. Cibil replaces Mark. A 10% weightage is proper in this case.
Cibil – Short notes
- If a friend has guaranteed a loan, watch carefully to see if the friend repays the loan
- When applying for loans in the future, choose loans wisely.
- If your parents have taken out an education loan for your future, you can repay it with a thank you loan.
- If your recent loan application has been rejected by the bank, this will negatively affect your CIBIL score. Don’t apply for another loan right away, relax.
- If you return your check with no funds in your overdraft account, Cibil will also turn it back.
- If you have informed the bank that you should not deduct my account due to the corona issue, you can deduct it after 3 months and this will not affect your CIBIL score.
- Cibil may also be at fault. Sometimes it shows that the loan that you have paid off in full is still outstanding beyond the due date. Purchase, check, and arrange for correction.