Introduction
Your CIBIL score is a key indicator of your financial health, reflecting your creditworthiness and influencing your capacity to secure loans or credit cards.
Frequently Asked Questions
A perfect 900 credit score is achievable but highly uncommon. Most lenders see anything above 750 as excellent. To maintain such a score, you must make timely payments, keep low credit utilisation, and have a long credit history.
You can check your CIBIL score for free once a year by visiting the official CIBIL website. Just log in to your myCIBIL account, go to the ‘My Account’ section, and select 'Get your Free Report' to access your credit score at no cost.
Your CIBIL score helps lenders decide if you’re a suitable candidate for loans or credit cards. A good CIBIL score is crucial if you're applying for a Personal Loan to cover medical expenses, plan an event, or support loved ones. A low score may lead to rejection. At HDFC Bank, you can secure a personal loan with affordable interest rates and easy EMI options, helping you maintain a healthy CIBIL score.
Several factors determine your CIBIL Score, with payment history being the most crucial. Other factors include:
⦁ Delayed EMI or credit card payments can lower your CIBIL Score.
⦁ Using more than 30% of your credit limit negatively impacts your score.
⦁ Paying only the minimum amount due on credit cards can lower your CIBIL Score.
⦁ Lastly, the length of your credit history also influences how your CIBIL Score is evaluated.
CIBIL keeps track of people on the Defaulters’ List and the details of their defaults. CIBIL holds this report for 7 years from the date of the first late report.
Here are some ways to maintain a healthy CIBIL Score:
⦁ Set reminders to pay off loan EMIs or Credit Card dues on time.
⦁ Lengthen your credit history by holding on to older Credit Cards.
⦁ Ensure that you control your credit usage to maintain a healthy utilisation ratio.
⦁ Do not take on too much debt at a time. Prioritise paying off one loan before taking another.
⦁ Build a CIBIL Score by choosing a mixed bag of secured and unsecured loans.
According to Indian standards, the CIBIL Score is between 300 to 900. Within this range, anything above 700 is considered good.
Since checking your CIBIL Score does not affect the score, you can monitor it regularly. Checking might provide the information needed to improve or manage your score and allow you to apply for the right kind of loans and credit cards.
To apply for a Personal Loan, the higher your Credit Score, the better your chances of getting loan approval. Usually, banks approve loans for candidates whose Credit Score is 750 or above.
A CIBIL score reflects your creditworthiness in numbers, helping banks assess your repayment ability. In India, the CIBIL score, ranging from 300 to 900, is the most recognised. CIBIL (TransUnion CIBIL Limited) is one of several credit agencies, but its strong reputation makes its score synonymous with credit evaluation in the country.
At HDFC Bank, an official partner of CIBIL, you can check a CIBIL Score. Click here to input basic details and find out your CIBIL Score in minutes! .
Your CIBIL Score is essential, especially when applying for unsecured or collateral loans. Here, the lending bank can only rely on your CIBIL Score while disbursing the loan amount; thus, your CIBIL Score becomes vital to loan approval.
Your CIBIL Score is a numerical amount derived after an algorithm is applied to your credit history. While every institution has its algorithm, certain factors, such as payment history, credit type, credit age, etc., are generally considered.
When you check your CIBIL Score, the act is considered a soft enquiry and does not impact your creditworthiness.