A Beginner’s Guide to CIBIL Score

November 13, 2017by Team CapitaWorld0
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What is a CIBIL Score?

It is a 3 digit numeric summary of your credit history. It comprises of an individual’s credit payment history across loan types and credit institutions over a period of time. It does not contain information related to your savings, fixed deposits or investments.

What is a Good CIBIL Score?

The higher your score will be, the better your chances of getting a loan approved. The closer you score is to 900, the more confidence your lender will have on your ability to repay the loan.

Any score above 750 is considered a good credit score. As per CIBIL official website, 80.4% are having a score of 750+ recently.

CapitaWorld - Guide to CIBIL Score
(Source: www.cibil.com)

How to get CIBIL Score online?

  • Step 1: Fill the online application form (Provide your details like your name, date of birth, address, phone number etc).
  • Step 2: Once you have filled all these details, and then after clicking submit button & make payment.
  • Step 3: You have to submit few authentication details. Post successful authentication, you will get the CIBIL score in your email within 24 hours.

How to read CIBIL Report?

The CIBIL report is divided into 6 sections:

  • CIBIL Score: the customer’s individual score. (Out of 900).
  • Personal Details: Name, PAN Card Number, Date of Birth & Unique ID Number.
  • Contact Information: Address, Phone Number & Email Address.
  • Employment Information: Your monthly/yearly income, Type of Employment (Salaried/Self Employed).
  • Account Information: Your loan details (loan amount, type of loan, lender etc) & repayment history.
  • Enquiry Information: Loan/Credit card enquiry made by the customer with date & amount.

How to improve your CIBIL Score?

To improve your Credit Score you need to follow 6 simple rules:

  • Make timely payments: Any non-payment or late payments are negatively viewed by lenders.
  • Keep your balances low: Never use too much credit.
  • Maintain a right mix of credit: Have a healthy mix of Secured (Home Loan, Car Loan etc) and Unsecured loans (Personal loans, Credit Card etc)
  • Don’t apply for credit too frequently: It shows your credit hungry behavior.
  • Monitor your co-signed, guaranteed and joint accounts monthly: Periodically review all your credit card and loan accounts.
  • Review your credit history once in a year: It is a good habit to check your CIBIL report once in a year.

CIBIL dispute resolution process

If you found any discrepancy in your CIBIL report, then CIBIL allows you to remove those inaccuracies. For this, you need to visit this page: https://www.cibil.com/dispute-resolution

Moreover, the CIBIL does not charge anything to its consumers for this service.
Here is the flow of dispute resolution process:

CapitaWorld - CIBIL Score

(Source: www.cibil.com)

Conclusion

All the lenders look at your credit score before deciding on a loan, when you apply for a loan/credit card. So, it is very important for everyone to get the clear idea of your CIBIL report. Hope this article has helped you to understand this. If you still have any query related to loans or CIBIL, then you can get free consultation here.


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