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HDFC CIBIL SCORE

Check Our CIBIL Score Before applying for HDFC Loans

What is CIBIL Score? 

The Credit Information Bureau of India Ltd. (CIBIL) is India’s oldest credit information provider.

Your CIBIL score determines creditworthiness, a three-digit number between 300 and 900. The creditworthiness of the individual is higher when the CIBIL score is higher. The value represents the lender’s confidence in the borrower’s ability to repay the loan. Many factors are considered when calculating a CIBIL score, including repayment patterns, credit history, open accounts, debt levels, and utilization of available credit.

Individuals’ CIBIL scores determine how much credit they are eligible to receive and at what rate and for how long they will receive the loan.

How much is CIBIL score ideal for getting a loan from HDFC Bank?

CIBIL scores range from 300 to 900; any score over 700 is considered good enough for HDFC loan approval. For some loans, the cut-off might be higher. As a result of a higher credit score, you are more likely to get your loan approved since it indicates a responsible repayment record.

What factors affect HDFC CIBIL score?

Pay attention to a few factors that affect your HDFC CIBIL score to ensure high loan approval chances.

  • Credit utilization Ratio

Your credit utilization ratio is the amount of credit you use compared to your preferred credit limit. You will have a poor HDFC Credit score if you constantly exceed 30% of your credit limit. Maintain a good credit score by staying within this limit. For a credit limit of around one lakh, spend approximately 30,000/- per month.

  • The behavior of the borrower

When you check your HDFC credit score, it reflects your behavior as a borrower; whether you have made timely payments determines your credit score. A single late payment can negatively impact your credit score. Maintain a good CIBIL score for HDFC Bank loan by paying all your bills, debts, and other obligations on time.

  • Multiple credit card and loan applications 

Your HDFC CIBIL score will be affected if you constantly apply for credit cards and loans at different banks. If you already have a credit card, do not apply for another card soon, and take some time  off before applying for other credit cards. Even with loans, do not apply for another one if you already have a loan under your name. It will help you maintain a decent credit score.

  • Credit mix

Those with excellent credit scores are more likely to have unsecured and secured loans. When applying for a loan in HDFC bank or credit card, ensure a credit mix of secured and unsecured loans. 

  • Credit History length 

If you have a long credit history, then its more likely that your loan may get approved. A long credit history means the borrower has responsibly made all past payments on time. Lenders rely on and provide loans to those who have extended credit histories.

Probable Reasons for HDFC Bank Loan Rejection

  • Low CIBIL Rating – As mentioned in the introduction, if your CIBIL score is low and your CIBIL history is poor, you will have difficulty getting an HDFC Bank loan.
  • Age – HDFC Bank Loans require a minimum age of 21 and a maximum of 65. Your age determines your repayment tenure, which is why it is essential to be in this eligible criteria.
  • Income: It is often the case that the loan amount does not coincide with your income bracket. As a result, you do not meet the minimum income requirement. As a result, your loan application will be rejected.
  • Employer’s Credentials – HDFC Bank has a list of companies to which it does not provide loans. You are unlikely to receive a loan if you work for one of these companies.

How to improve the low credit score of HDFC Bank?

Poor credit scores can limit your borrowing options. Users with low credit scores are generally restricted from utilizing credit cards to their full potential by banks. Loan benefits are not offered to those who have poor credit scores. 

If you are wondering how to improve your CIBIL score, follow the following steps.

  • Make sure you pay all your bills, EMIs, and debts on time to avoid late fees. Late payments affect your credit score immensely.
  • Do not apply for multiple loans in a short period as your HDFC CIBIL report might get affected in the long run. It will show that you are in desperate need of money with no patience.
  • Maintain a record of your credit history to avoid all kinds of minor and major errors.
  • Make sure you have a mix of both secured and unsecured loan to build a good credit score. The credit card is unsecured. Whereas home loans, auto loans, and car loans are secured loans. A credit mix can improve your CIBIL score if you pay your bills promptly.

How does HDFC Bank calculate credit scores?

As with other banks and financial institutions, your HDFC CIBIL score ranges from 300 to 900 based on your creditworthiness. Several factors are taken into consideration by HDFC bank to calculate your credit score.

  • The HDFC bank calculates your payment history thoroughly. It will hugely impact your creditworthiness. If you are a borrower who has been making payments on time, it will reflect on your HDFC credit score.
  • Your credit score is also heavily influenced by your credit utilization ratio. Having a healthy and balanced spending habits may help build a minimum CIBIL Score. To maintain a good credit score, applicants should use about 30% to 40% of their monthly credit limit.
  • HDFC bank officials also review your total bank accounts and the details while calculating your HDFC CIBIL score. A credit mix of both secured and unsecured loans, might help you have a higher credit score.
  • Your age, as well as the length of your credit history, are taken into consideration by the HDFC

FAQ’S

1. Can frequent checking of the CIBIL score damage it?

A. Before sanctioning any loan or credit card application, the lenders check your CIBIL score. Your credit score may be affected due to frequent inquiries made within a short period of time. On the other hand, you can make a soft inquiry which is allowed as a part of systematic inquiry, Making a soft inquiry does not harm the credit score of the person. It is also considered to be a healthy practice.

2. Can I check my CIBIL score using my PAN card?

A. Yes. The PAN card is one of the many identification documents that can be used to check your credit score. With CreditMantri, you can check your credit score for free using your PAN number.

3. Why is your Credit Score important?

To help borrower lend you money and to decide whether you are a good candidate for them who will pay the loan on time, its essential to have a good credit score. 

Your credit score plays an important role to help you meet urgent expenses like medical, family event, support your loved ones. A low credit score can impact your eligibility and may cause rejection of your applied loan. 

HDFC bank offers personal loans with several benefits, like an affordable interest rate along with easy pay EMI’s through several modes. After repaying the loan, you can maintain a healthy Credit Score.

4. How much time it takes to improve your CIBIL score with a gold loan?

The time taken to improve your CIBIL credit score with a gold loan cannot be defined as it depends on many other factors. Keep paying the debt on time and in full if you want to see your CIBIL score improve. Whenever you make a repayment, the lender reports it to the credit bureau, which reflects on your CIBIL score. 

5. Where and how can I get a free CIBIL score or CIBIL report?

You can get one time free CIBIL report by logging into myCIBIL. Sign in to myCIBIL, go to the ‘My Account’ tab at the top right of the screen, and click on the ‘Get your Free Report’ link. If you are not a member, click here to get your free CIBIL Score & Report and just follow the below-mentioned process.

Reference links:

  • https://www.bankbazaar.com/cibil/cibil-score-for-personal-loan-in-hdfc-bank.html
  • https://www.paisabazaar.com/cibil/cibil-score-for-hdfc-personal-loan/
  • https://www.mymoneymantra.com/credit-score/hdfc
  • https://cred.club/check-your-credit-score/articles/cibil-score-for-hdfc-personal-loan
  • https://housing.com/news/hdfc-bank-personal-loan-and-minimum-cibil-score-required/

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