Your CIBIL score is a depiction of your creditworthiness as a borrower manifesting from their individual credit history. While at EarlySalary, we do provide personal loans in spite of a low or no CIBIL score, its importance in making any major financial decision can not be dispensed with. It’s why we provide an easy-to-use CIBIL score calculator to know your credit score accurately and instantly. The entire process - from getting your CIBIL score to accessing instant personal loans - is completely online and hassle-free.
The promulgation of the Credit Companies (Regulations) Act in the year 2005 has led to creation of 4 major credit rating agencies such as TransUnion CIBIL, Equifax, Experian and CRIF Highmark. These organisations are designed to evaluate an individual on the basis of their credit history and assign them a number based on their creditworthiness. This number, known as the credit score, plays a very crucial role in making any financial decisions, especially credit related.
While the credit score by all of these organisations are valid, the CIBIL score, calculated by TransUnion CIBIL is the most popular and widely accepted one.
A CIBIL score can essentially be understood as a 3 digit numeric representation of your creditworthiness, ranging from 300 to 900 (check your credit score here) Based upon individual credit history, a CIBIL score closer to 900 shows reliability as a borrower while the converse represents an individual to be not so credible a borrower. On average, a course over 600+ is considered a good score.
To know more about what your credit score says about you here, read here.
A credit score says a lot about an individual. Since the credit score of an individual is associated with his/her credit history, it is important to know the same before making any major financial decision, especially if it involves credit in any form. Plus, the RBI has issued guidelines to the effect that no loan or other forms of credit should be given without evaluation of the individual’s CIBIL score.
Some of the most important uses checking your CIBIL score are:
CIBIL score is an essential metric as far as the creditworthiness of an individual is concerned. It is important to know your CIBIL score before taking up any major financial commitment. It is because of this reason that several portals offer a free credit score check. For instance, you can visit the EarlySalary website or app and check your CIBIL scorefor free.
The CIBIL score is not a static concept; it’s a dynamic one. While certain right steps and make your CIBIL score soar and make your life easier, a bad one can lead to a lot of troubles so far as the credit taking process is concerned. Some of the things that adversely affect your CIBIL score include:
Since there are several factors that affect CIBIL score and owing to the importance of having a healthy CIBIL score, here are a few tips you can use to improve your CIBIL score:
Borrowers can keep in their mind several tips and tricks to preserve their credit score or even improve their credit scores.Check here in detail.
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