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Credit Score in India – Find Out How it Works

Do you know what the credit score is for? Have you ever needed it and disappointed?
If you did not know how to answer these questions, or if you want to learn about the subject, check here everything we have prepared about it.

Credit score is calculated based on your payment history. Indian credit protection companies make this survey. That way, when you request a bank loan, a credit card, financing or even opening of credits in retail stores, your score is analyzed.

With this, the person who makes the search gets a numbering, ranging from 0 to 1000 being 0 the worst result and 1000 the best.

To perform certain types of purchases, it is essential that the score be considered. This is because it is based on it that the company or institution will grant or not its services to the consumer. In this way, they analyze the possibility of default and risk that you offer.

So that you can learn more about the Cibil score, we have prepared a guide for guiding you.
There are several situations for use: Credit score for credit Card, credit score for Car Loan, Home loan et

How Cibil Credit Score Works

Credit Score

Cibil score is obtained from your credit history. This score is obtained from the Cibil report (also known as CIR I. and Credit Information report). A CIR is an individual’s credit payment history across loan types and credit institutions over a period.

It is important to emphasize that this type of analysis is based only on percentage numbers. CIR has no competence to identify its possible debts or details.

To Check Account number or member details you can purchase your Cibil Report. In this report, you will find details about your credit history according to the creditors you have already passed. Only in this way is it possible to have access to the details of your debts.

What is Credit Score

Credit score is a percentage numerical credit score based on a level analysis of a person’s credit files. The result of this analysis represents the level of credibility faced with previous credit histories.

The credit score is based primarily on a credit report information typically originating from credit bureaus.

Thus, the score obtained indicates whether you are a little or very reliable person with regard to the inadimplency and payment of debts. This is one of the main factors for granting or not lending, financing, etc.

Reasons for Having Low CIBIL Credit Score

Cibil score calculation under 700 are usually considered low Cibil score by lenders and credit grantors. There are several factors that influence the increase or decrease of your score. The main factor for a low score, is the non-payment of your debts, or pay them delayed.

These acts are considered harmful to your credit history and impair the score obtained. However, the positive points are also considered. When you seek to renegotiate old debts, the kite and when you pay your bills in a day, your score tends to improve.

It is important to emphasize that these acts should lead to a natural increase in their score. In this way, it is not possible that your score would intentionally increase by someone or by some institution. To ensure a good score, you must keep your bills paid on time and within the maturity.

Turning your credit is another factor that helps to raise points. The more you buy on credit, and pay in day, the more points you can increase.

Credit Score Rating

Credit Score Rating

A good credit score ranges from 750-900. If you have a score of 750 and above, it means you have a good score. If you have a score less than 750, the institutions may consider that is a risk to give you credit cards or loans.

There are important credit management companies that provide help you understand your credit health and provide online analysis. With you can take the positions to turn your score good! Your credit score is calculated on your payment history, especially. Your repayment track record contributes to over 35% of weightage while computing our credit score.

In addition, your credit score is also calculated based on these factors:

  1. Number of loans and credit cards you have.
  2. Total available credit balance.
  3. Balance between secured and unsecured loans.
  4. Credit utilization.
  5. Plus a whole host of other factors.

A credit scoring algorithm is then used by credit bureaus to calculate your credit score. The higher your credit score, the higher are your chances to get your loan approved!

Credit Score Check Free

There are, currently, a number of tools that will help you calculate your score in a freeway. However, you must be careful not to provide personal information to unknown sites and that may not be secure. This way, the safest place to check your score online is on the Cibil website itself.

In it, just you access with your data and provide some details to create an account and ready! Your access will be enabled and you can calculate the score as many times as you want, and whenever you want!

You can be access to the Cibil score for Home Loan, Benefits of a Good Cibil score and other necessary information you are looking for and make the credit rating check! The free cibil score is totally secure! Personal information collected by the Cibil are: Name, date of birth, gender and identification numbers such as PAN, passport number, voter’s number.

What is a Good Credit Score

According to Experian, for a score with a range between 300 and 850, a credit score of 700 or above is generally considered good. A score of 800 or above on the same range is considered to be excellent. Most credit scores stays between 600 and 750.

The larger your credit project-loan to buy car, house-larger should your score. This will indicate confidence in your profile and that you are committed to honoring the payment of your parcels!