What Does CIBIL Report Tell About You?

So often the word ‘Finance’ rules the wish one would like to achieve in their lifetime. If someone is hell bent on buying a car, the massive price acts as a barrier. Same is the case with buying a dream home for yourself.

So, one has to apply for a loan or even a credit card to do what they want to. The irony is a loan or card approval is not that easy in the era of default. And so, banks and other financial institutions test your application with respect to several parameters. One parameter that the institutions first look at is your credit score. Credit scores are prepared by quite a few credit bureaus in India.

However, CIBIL is preferred more by the lenders when it comes to assessing one’s eligibility for a credit. Not only CIBIL provides score but even a report indicating the repayment behaviour you may have portrayed while servicing a debt. Won’t you like to check your CIBIL Report with us? You would, right?

How to Read CIBIL Report PDF?

You can check your CIBIL report by visiting the website of the bureau. All you need to do is to share your personal and credit details online to create an account. While personal details would include your name, date of birth, PAN number, residence address, the credit information would consist of the loan or credit card account number, the amount of debt owed, loan tenure, expiry date of credit card, etc. After sharing all these, you can create a login by selecting a distinct User ID and Password. You can thus enter your login credentials to check your credit report online.

The report, besides telling you the score, also highlights the good and bad things about your repayment behaviour. Keep up the good stuff, but at the same time, keep a close look at the grey areas and take a note of the suggestions to get those corrected in time. If the report highlights your growing limit utilization on credit card as a concern, you better control your card spends. Excessive credit utilization does impair your credit score by creating a credit-hungry impression of yours. And similarly, there can be concerns about late payment pulling down your credit score. In that case, you must prioritize your spends to save enough to repay on time, positively impacting your CIBIL score.

CIBIL Score Range

CIBIL score ranges from 300-900 in India. If one achieves a score of 750 and above, chances of him/her passing the approval test for a loan or credit card would be much more than those having credit scores below the said level. Yes, banks can okay your application even if you have a score of 700. But then, the interest rate deals and all won’t be that attractive. With higher interest rates, the likely EMIs are going to be a lot more than those offered the debt at lower rates.

How to Improve CIBIL Score?

A CIBIL score below 700 would make you do a lot of homework to get it to the desired level. But before that, you should first know the reasons for a poor score. You can find the reasons in CIBIL report. The reasons can be any of the following -

       Delay or Default in Payment of Debt
       High Credit Limit Utilization
       Checking Credit Scores Multiple Times in a Short Duration
       Applying for Too Many Credits

There can be reasons beyond what pointed out above. Whatever the reasons would be, you first need to keep a lid on your spends without compromising on your day-to-day needs. It requires you to rejig your spending plans. Often, families love to eat outside on weekends, drying out the bank balance in a jiffy and making a timely loan and card repayment a near impossibility.

So, when the loan is running, these families can cut down on their dining spends outside and save what’s needed for a smooth repayment. With repayment getting in order, the credit score would keep improving all the time.

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