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Forum Home > Finance > What is the Importance of a Good CIBIL Score?

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22 February 2018, 12:33   Report Abuse

Anvi Sharma

[ Scorecard : 80]

The importance of a good CIBIL score is realized when we apply for a credit facility and are not able to get the best deals due to the score not up to the mark. With the best, we mean a credit card with amazing cashback offers, reward points and access to almost all domestic as well as international lounges.


So, if you have not yet check your credit score (popular as CIBIL score) you can do it online within a few minutes. CIBIL is a credit bureau company providing credit report and score. The company has earned so much name that people now recognize the score itself with the name. In this article, we have brought in the information on the steps involved in the process. Later you would find the basis of the calculation of the score. You may also read about the reasons behind the downfall of the score.  


How can you check CIBIL score?


You can follow the below steps in order to check your score online:


  1. Go to check CIBIL score check website
  2. Provide your full name as mentioned on the PAN card
  3. Enter your Date of Birth
  4. Choose the gender you belong to
  5. Mention your PAN card number
  6. Enter your contact address
  7. Provide the email ID fn which you want to get the credit report
  8. Enter your mobile number
  9. Submit the form


On the successful submission of the CIBIL score form, you will get a confirmation on your email ID. You will get the detailed credit report on the email ID you have provided.


What does a bad CIBIL score mean?


A credit score is based on the factors as mentioned here:


  • The repayment history (35%)
  • The amount you owe to lenders (30%)
  • Number of years of servicing debt (15%)
  • Number and amount of recent loans taken or applied for (10%)
  • The Credit Mix (10%)


How do you end up with bad credit score?


We have often talked about the factors based on which the credit report is generated but here are the mistakes due to which you harm your credit score:


  • When you are a defaulter in making any of the repayments

  • When you apply for a loan and get rejected consistently

  • When you have never ever taken a loan and hence you have no credit history to validate


What to do when you have a bad repayment history?


You should know that a problem without a solution is just a myth. Nothing in this world is important and having a poor repayment track record is one of the most common mistakes. You can still follow different mediums to improve your track record.


Can you apply for a loan with bad credit score?


If you have been worried lately about whether or not you can get a loan, there is good news. In the case of loans, below are the factors that are considered by the lenders to consider your loan application.


  • Net income

  • Savings

  • Investments

  • Educational background

  • Credit card bills and online expenditure

  • Relationship with the lender


What are the factors that affect your Credit Score?


There are certain basic but important factors that affect the credit score of the individual. If you manage to keep these things in mind, it will really be helpful for you.


  • Avoid carrying credit cards who are of no use to you.

  • Do not increase your credit limit as it affects your credit score.

  • If you are using more than 50% of your credit card limit, it will affect the score.

  • No-loan people also have a bad score of no credit score.

  • Prepayment of the loans also affects the credit score.

  • Late payments of the loan EMIs or the credit card bill.

  • Positive payment history will help build a good CIBIL score or credit score.


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