What is a CIBIL score?
🔍 A CIBIL Score is a numerical expression that predicts the likelihood of default of a person in the next 12 months. It is influenced by your past repayment track record captured in your CIBIL report. Essentially, a good credit score indicates responsible credit behavior, making you a favorable customer in the eyes of lenders.
Why is my CIBIL score important?
🔍 Your CIBIL score is crucial when applying for loans or credit cards as it determines your creditworthiness. A good score (above 750) enhances your chances of getting favorable interest rates, while a poor score may lead to loan rejections. Moreover, certain job sectors, like banking and finance, consider CIBIL scores during the hiring process to assess financial discipline.
What determines my CIBIL score?
🔍 Your CIBIL score is based on five key factors: repayment history, credit utilization, average age of credit accounts, credit mix, and inquiries by lenders. To maintain a good score, ensure timely repayments, low credit card balances, diverse credit types, and limited credit applications.
How can I access my CIBIL score?
🔍 Accessing your CIBIL score is simple. Visit cibil.com, provide personal details, pay a nominal fee, and verify your identity. Your score will be emailed to you on the same day. Checking your own score is considered a soft inquiry and does not impact your score negatively.
Does checking my own CIBIL score impact my score negatively?
🔍 No, checking your own CIBIL score is a soft inquiry and does not affect your score. However, multiple hard inquiries from lenders can have a negative impact. It is advisable to monitor your score annually and before applying for new credit.
How often should I access my CIBIL credit score?
🔍 It is recommended to check your CIBIL score at least once a year and six months before applying for new credit. Regular monitoring ensures your score is satisfactory and your credit report is error-free, safeguarding your financial health. Remember, maintaining a good CIBIL score reflects responsible credit management.