What is CIBIL Score - Credit Score Full Explained in Detail | Cibil Score Check free
Friends, whenever you want to take any kind of loan from anywhere or make a credit card, then lender Means Banks or, financial institutions, first of all, check your CIBIL score and if your CIBIL score is low, so your loan Or will not approve credit card. So why does this happen?
- What is the CIBIL score?
- How is the CIBIL score calculated?
- How can you check your civil score for free and most importantly if you have a low score, how can you improve it?
Let's know.
Credit Information Bureau (India) Limited ie CIBIL
CIBIL is India's largest and reliable credit bureau. Which are connected to almost all banks and financial institutions?
Provide a credit score, so we credited the CIBIL score, so what does this CIBIL score mean?
Mitra sends all the information related to your personal and credit institution to the credit bureau, and in this way, the credit bureau has all the information.
Relates to your loan and credit. To analyze all your data or information with a credit bureau like CIBIL creates a credit report and you get a ranking according to that credit report.
Which is from 300 to 900, this ranking is called Sibilian score, score close to 900, your performance is considered good. Therefore, before sanctioning a loan or before a credit card, see the same credit score, because in this credit score you asked the bank to take a loan or you have a relationship with the bank, all things are made.
So now we will talk about the bank
By looking at what factors this credit bureau, these credit scores are prepared
So let me tell you. This credit report is made up of four factors
So who are those four factors? And what factors are given weight
Friends, the first factor is that your previous performance
When about 30% weight is given, a credit score is calculated
What loan have you received in the past performance? And whether or not you have repaid the loan on repayment time. If you have not paid on time, this is a false effect on your credit score. If you pay only on payment time, then your credit score will be positively affected. And if you guys have a credit card, that's why you are paying its bill at once
Or not paying time on it. It also has a great effect, on calculating your credit score, this is what happened to Friends First Factor
Now it comes to another factor Friends of the second factor.
Credit type and duration. Credit type instrument. You have secured the loan, or have an unsecured loan and how much time is for the period, 25% weight is given when calculating this double credit score.
Saying credit type means that you have secured a loan or unsecured loan from a bank friend. If you do not know much about secured and unsecured, then let me tell you that a secured loan is a loan, which is to take a loan.
Do you have any property or valuable item, it has to be kept with the bank and it is a condition that if you do not return the loan amount to the bank.
The bank has the right, or it will seize that valuable thing, at the time fixed. So such a loan is called the secured loan. If you take a gold loan or a property loan, then all these loans fall into a secured loan. If you talk about unsecured loans,
In a bank unsecured loan, you do not have to keep anything with the bank. Seeing your capabilities, the bank gives you a loan. If you talk about education loans, you do not have to put anything in an education loan.
The bank takes some certificates from you and gives a loan. Similarly, if you talk about personal loans, the same goes for personal loans. So this whole lane comes under unsecured debt
But friends, let me tell you that the secured loan is much higher than the interest rate of the unsecured. So if you have already taken an unsecured loan. In advance, the banker thinks that you have too much interest in the past.
Because of which he does not want to give you a loan and your credit score also goes down. The same loan that you pay for the loan you are repaying on time. The same loan for you. The loan that you are repaying on time has a positive effect on your credit score.
So now let's talk about the third factor
The third factor comes in credit usage. Credit utility means, friends, what do you do if you have a credit card and its credit limit is 1 lakh. If you use the full limit of that credit card.
It has a very bad effect on your credit score. Because credit utilization is also given 25% weight, for calculating credit score
Friend if you have a credit card, otherwise, banks provide you with a credit card. You should use a credit limit of only 3% on it. If you use a range of 30-35%. Then your credit score is correct. But if you do this for the total credit limit
Then it has a wrong effect on your credit score.
So let's remember you today if you have a credit card, then you only use its 30-35% credit limit, leave the rest as it is and you pay the bill on time.
Now let's talk about the fourth factor.
The fourth factor is other, many small factories come, like some facts, I tell you guys, what do you do whenever you have to take a loan. The number of bank accounts you have. You apply for a loan in all banks, all banks send the information of this loan to the credit bureau. Credit bureaus feel that you are very hungry for a loan. Because of which your credit score goes down. And friends are given 20% weight to other factories. This can greatly reduce your credit score, you need a loan of 1 lakh but if you apply it in 5 banks. Credit bureaus get 5 lakhs information from banks and in this way the credit bureaus feel that you are very hungry for loans, you have applied at 5 places. Therefore friends have a very wrong effect on your credit score.
Whenever you want to take a loan, you only apply to the bank. Then your credit score will also remain and you will get a loan easily. But if you apply at 5 places, your credit score goes down and you do not have the loan approved. So there are four factors that your credit score is calculated by looking at friends.
we know how to check our credit score
There are many ways to check the CIBIL score as you can see Paissabazar.com. Creditmintra.com or now Paytm also launched which you can also check.But this is the official way cibil.com cibil.com is the official website of the CIBIL Credit Bureau. From where you can know your credit score for free,
So how?
Friends, for you, go to any web browser on your computer or smartphone and search it.
cibil.com/freecibilscore
When you search it, a webpage will open, a button will appear, now you have to click on it, as soon as you click on it. Then some personal information columns will be open and you will also have to provide a document in it.
So you fill all the information, you will be told your credit score, you can know your credit score with it
If you want to know from Paytm, then you have to open your Paytm application. And comes to the home screen. Three lines should appear in the top left corner of the home screen. You have to click on it, as soon as you click on it. Some options will open, you have to slide it down
A new option will appear on my credit score. You must click on my credit score. As soon as you click on my credit score then it will be given options. Please fill in some personal details. Such as first name, last name, date of birth, email id and phone number will fill this complete information and then be processed. Credit score will be shown to you but data that they will be friends
Will not belong to CIBIL
Just as CIBIL is a credit bureau, the experience is also a credit bureau. So you can see the data of Paytm.com or Paissabazar.com or Creditmantri.com.
You see the data of the Experiment Credit Bureau, do not look at the data of the Civil Credit Bureau. So guys, make sure that CIBIL's credit score is accurate and uses the same credit score.
Almost all bankers and financial institutions therefore you should check with the same. You can learn from here also, even if it is not wrong.
You can know one thing here. Where you are showing the CIBIL score, you will have 2 options at the bottom. When you go to that option, he will tell you then he will tell you what loan you have taken for which you have taken a credit card. Which loan you have taken earlier, payment completed, if you have not completed the payment, then which loan is currently active, it will also show the complete information. So you can see by looking at someone else's data.
Which are the loans that have taken credit cards?
So friends if your credit score is very low. So how can you improve it? I mentioned only four factors while making the correctionTake care of those four factories, your CIBIL score will automatically improve. But it may be time to improve in this way
If you want to print very soon then you can do it for this. That you go to your bank and you FD some money. Means make a fixed deposit of some money. When you receive a fixed deposit. So almost all banks have such facilities, you can get your 80% credit card. Fixed deposit then you will get 80% credit card. Your fixed deposit from him. And use the credit card at 30-35% limit and pay the bill on time. If you do this for 6-7 months, your credit score will automatically be affected. So now you know what is the CIBIL score how to calculate
How can you check your CIBIL score and how can I improve
So guys, if you still have a question-related CIBIL score. You can comment in our comment box.
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