CIBIL Rating: What’s Good Score To Get Credit Card Easily; How To Keep Excellent Rating

As part of the government’s financial inclusion efforts, more and more people are now joining the formal banking system. As a person opens a bank account, he/ she may get credit card or loan offers but the loan or credit card is sanctioned after scrutinising the customer’s credit rating. CIBIL score is one of the credit rating credit information company TransUnion CIBIL assigns a borrower. Here’s what is CIBIL Score, its importance and how you can maintain a good score.

What is CIBIL Score?

Ranging from 300 to 900, the CIBIL Score is a three-digit number. The higher score you have, the better it is. Generally, a score above 750 is considered good where the chances of loan approval become higher. This is a numeric summary of your credit history and a reflection of your credit profile, showing your credit behaviour as a borrower. It also reveals whether you have ever defaulted on any repayment in the past. This score gives an overall indication of your creditworthiness and history.

The report containing the CIBIL Score is called CIBIL Report. The report contains tabs — personal information, contact information, employment information, account information, and inquiry information.

CIBIL Score: Its Importance

When you approach a bank for a loan, the bank checks your creditworthiness and your past repayment record. The bank approves the loan only if your CIBIL score is good. So, maintaining a good score is very important. The score also saves individuals from any paper hassles to prove the records of the previous credits.

The CIBIL Report allows the bank to have a look at your credit history, including whether you have been punctual in repaying your previous debt. It also shows how many loans have you taken so far, including the amount and the duration of the previous credits. It includes records related to both credit cards and loans. It helps banks mitigate risks of defaults and hence reduces losses.

CIBIL Score: How Can You Maintain Good Score?

Don’t Delay Repayment of Dues: If you want to maintain a good CIBIL score, the first and foremost thing is to be strict with the repayments — pay within time and never delay. Repayment of loans or credit card dues has a very big impact on your CIBIL score.

Don’t Keep You Credit Card Limit Exhausted Always: It is advised to get a credit card with a higher top limit, if you are struggling to stay within the existing limit of the card. The credit utilisation ratio should be limited to 30 per cent to have a good CIBIL score.

Diversified Loan Products: It is better to diversify the loan portfolio with a good mixture of both secured and unsecured debt in order to get a high CIBIL score. A credit card is an unsecured debt, whereas a home or vehicle loan is a secured debt.

How To Check CIBIL Score

CIBIL provides one report a year without any charge and it can be checked online. Following are the steps through which you can check the CIBIL score:

1) Go to the official CIBIL website

2) Select ‘Get your CIBIL Score’

3) Click on ‘Click here’ to get your free annual CIBIL score

4) Type in your name, e-mail ID, and password. Attach an ID proof (passport number, PAN card, Aadhaar or Voter ID). Then enter your PIN code, date of birth, and also your phone number

5) Click on ‘accept and continue’

6) You will get a one-time password (OTP) on your registered mobile number. Type in the OTP and select ‘Continue’

7) Select ‘go to dashboard’ and check your credit score

8) You will be redirected to the website,

9) Click on ‘member login’ and once you log in, you can see your CIBIL score.