Checking your credit report is very important, but why? To start with, let us begin with basics. Must you have heard this term before? If yes, good for you but if not then you must first understand what is it all about. CIBIL is a credit score and reports providing company which is among the most trusted companies for such purposes. The score generated by the company is named as CIBIL score.
It is the numeric representation of the payment history of an individual and it consists of the details of all the payments to the lender along with the name of the lenders and the time of payment. It ranges from 300-900 wherein the higher range shows the creditworthiness of an individual.
The credit score generated is important when a person wants to avail a credit facility. When a person has a credit history, it is easier to get a loan. But, if he doesn’t have it, his score will be zero. In such cases, lenders find it difficult to trust them with their product and its repayment and hence prefer giving higher rate products. On the other hand, if a person has a credit history, he or she can be trusted with the repayment.
However, a poor score is not welcomed. A score is segregated as below 650 – poor, below 750 – Ok, Above 750 – good. Those having above 750 are eligible for most of the products or facilities and also to negotiate with the lender. Others just really find it difficult to prove it to the lender their suitability. Thus, maintaining a good the upper range is quite important to use better facilities and offers. If you want to improve your credit score, ask your financial advisor for the necessary steps to follow. They are the ones to take you through the right path.
What Does Zero In CIBIL Report Reflect?
Credit report consists of the score and the details of the payment for each product and lender. Having 000 in CIBIL report means you have no credit history and hence there is nothing to show.
How Can You Check CIBIL Report Status?
You can get your report online from the same portal where you check your score. The service is instant and simple. You can check the status of your credit worthiness as per the data reflected.
How is CIBIL Score Calculation Done?
The calculation of CIBIL 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%)
In Which Accounts Does CIBIL Report Reflect?
- All Loan Accounts
- Credit Cards
- Settled and Unsettled Accounts
- Joint Loan Account
- All Closed Loan Accounts
- Accounts Where You Are As Guarantor
- Holding Add-on Card
Your saving account, Fixed Deposit, Recurring Deposit or other investments are not taken in CIR.
With the above information on CIBIL report, we hope all your doubts are clear now. You can thus check your CIBIL score today and get your report online within a few minutes.