A CIBL score, which is often referred to as a consumer’s “credit score”, is a three-digit numeric digit that reflects your credit history and credit profile. CIBL or Credit Information Bureau Limited is an Indian company registered by the Reserve Bank of India. CIBL score is one of the in-demand credit scores in India.
CIBL in India is also known as CIBL Transunion score, has complete access to all financial information of the individuals who have borrowed or repaid the money. A credit score ranges between 300 to 900. The closer your credit score is to 900, the better are the chances of getting your loan application approved by the lender.
Ask yourself: What is my CIBL score?
Your credit score plays a very important role when it comes to applying for a loan from a bank. It is important because it reflects how credit-worthy you are. To obtain an acceptable credit score, it takes time to build up depending on your past credit behavior.
However, you must think of your credit score before asking for loan application approval. It reflects how risky or safe you are as a borrower. Banks or financial institutions check your CIBL score and decides whether to consider your application further or not. So, it is highly recommended to stay close to a 900 credit score.
Why does CIBL Score matter?
Always remember that your credit score is the very first impression for the bank. When a person applies for a loan, the very thing that the lender review is your CIBL score and report. It depicts the person’s credit history from a number of sources including banks, credit card companies, governments, and other financial institutions.
Take a look at this example: Suppose you’re in a battle and you have to score above 50, if you get a score of more than 50 then think of yourself as a good player. In the same way, when your CIBL score is high, then there are higher chances of your loan application being approved.
Improve your CIBL Score Quickly
Are you planning to apply for a credit card or loan? Want to get your loan application approved quickly? Looking for a personal loan online at low interest rates? Then you have to ensure that your credit score is good. A good credit score of 700 or above is considered to apply for a loan.
But, what if my CIBL score is low? Am I eligible to apply for a loan? We have answers who are struggling to obtain a satisfactory credit score. Check out the following points that can help you to improve your credit score quickly:
PAY YOUR OUTSTANDING DUES IN A TIMELY MANNER
Organize and paying your outstanding dues, credit card bills, EMIs on time can help in improving your credit score. Discharge of your outstanding debts can have a major impact on your CIBL score. If you pay your dues on time, it’ll have a positive influence on your credit score.
LIMIT YOUR CREDIT USAGE
Maintain your credit utilization and keep it low. Avoid taking too much credit at one time. Stabilize your utilization ratio as less than 30% o your credit limit. It is advisable to avoid opting for many loans at a time, this will adversely affect your credit score. Also, the best way to maintain your credit usage is to customize your credit limit based on your expenses.
SET PAYMENT REMINDERS
You should set reminders on EMI payments in order to reduce the chances of getting a low credit score. If you keep delaying in settling your debts or dues, it’ll lower your credit score. Pay attention to reminders or enabling automate bill payment can also help in maintaining a good CIBL credit score.
MONITOR YOUR CREDIT REPORT
It may happen in some cases that your CIBL report has unsolved errors like incorrect information, delay in recording important details, or any inappropriate information. This will lower your credit score. So, keep checking your CIBL report regularly to identify errors and get them rectified by submitting CIBL Dispute Resolution Form online.
KEEP A CHECK ON EVERY LOAN YOU OPT FOR:
When applying for a loan, ensure that you must check the eligibility criteria of the loan type you’re opting for. There are various types of loans and repayment options that banks or financial institutions can provide you, but don’t take multiple loans at once. This will bring down your CIBL score. Also, try to apply for a loan with longer tenures so that you’ll be able to repay the loan at a low rate easily. However, if you keep paying your EMIs on time without any delay, this will improve your credit score.
Therefore, implementing these ways can help in improving your credit score. Don’t think that following these measures, you’ll be able to improve your credit score overnight. You need to be patient as it takes time to build up and consistent effort to achieve the desirable score.
