What is CIBIL? How to improve CIBIL score?


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    CIBIL is a 3 digit numeric code, a database of your credit information. A set of your past credit records and a criteria to know your credit worthiness. Banks and NBFCs primarily check your CIBIL score before approving your loan or credit card. Having a good CIBIL score can help you fetch good loans and credit cards.



  • I think a CIBIL score above 750 is good enough. You can get easy loan and credit card approval if you have good credit score. What are your views ? Clearing credit card bills on time is one way to build good score for getting personal loans approved.



  • Paying your credit card bills on time is a great way to improve your credit score. If you think of applying for a personal loan, having an already good CIBIL increases the chances of easy approvals. A score between 750-900 usually enhances the possibility to get good amount of loan and quick approval.
    Banks and NBFCs generally check your credit history before sanctioning any fresh loan.



  • You have to look upon the CIBIL score if you are going to take a loan from a bank. The first thing that is gonna asked by the bank to you is the CIBIL score. It is the 3 digit code and a score of around 700 is a good one. Thank you so much!



  • Hi,
    CIBIL is your credit worthiness report.
    Before giving any loans or credit cards, banks check your cibil score to get an idea of you loan repayment capacity.
    If you have not taken any loan or credit card then your CIBIL profile is not created and your CIBIL score comes out to be -1.
    In case you have taken loans and use credit card, you score will vary between 300 to 900.
    Where 300 is the worst CIBIL score and banks can reject giving loans a or credit card to you.
    CIBIL is updated regularly, within 30-45 days.
    So even if you have bad CIBIL score today, you may score good in 3-4 months time.



  • @prateek CIBIL Is going to be a defacto standard going forward for loan approvals and credit card limits. Good points on how the CIBIL score is calculated !!



  • CIBIL and other institutes are just a grab for enforcing people to take credit cards/loans. The people who dont require credit cards or loans are also forced to get so that they can build credit score for a future home loan or such. Not a good practice IMO



  • @prateek Hi, Can you share any tips for improving CIBIL score. Some simple and practical steps to attain a good credit score shall be really helpful. I am a salaried person looking for my first credit card. So, will the credit card company check my score also? Further, I am looking forward to getting a home loan this year. So, is it really possible to improve CIBIL in few months or I'll have to wait for more time.



  • @Girish
    CIBIL score can be improved by discipline only.
    You are already on its path to improve it by looking for a credit card.
    Get a decent card, and pay all bills on time.
    Also, don't use credit card for more than 40% of total limit.
    I read somewhere that they check usage to limit ratio too while giving CIBIL rating.
    Within 3 months you would be able to get good CIBIL score.



  • @prateek Thanks for your feedback. I won't be spending too much through my credit card. I will definitely keep these points in mind. Really wish to improve my credit score so that I can avail a home loan easily this year.



  • All the best



  • @prateek Hey, thanks for giving useful advice on improving Credit score. This seems to be a nice platform where one gets quick answers on different financial topics.
    I was also looking for ways to enhance my credit score. Presently its around 550 only. I have 2 credit cards, got a new one issued recently only. Some free card offer was going on, so got that.
    But, just came to know that too many cards can hamper score. Having 2 is ok, I think. I am regular in paying bills for my first credit card. Haven't still used the second one. Should I use the second card? Will it positively affect my score if I pay both their bills on time.



  • Hi, don't get attracted looking at free credit cards offer. You have to pay interest if bill not cleared on time. So, one should get cards as per usage. There are so many free cards and u can't afford to get too many. So, choose the one which fits your needs.



  • What it is?
    Basically Credit Information Report (CIR) is the summary of the payment history of how sincerely you have been paying your loan and credit card dues from any bank or financial institutions. Based on that the ‘credit Score’ is generated. It is a 3 digit numeric which ranges from 300-900, the closer the score is to 900 the stronger your profile is.
    Credit score determines the worthiness of the person to pay back the lenders.

    What should you do to improve your CIBIL Score?

    1. Most effective way is to pay your credit payments on time. Missing the due dates can contribute a lot in low credit score.
    2. In case your credit score has not yet generated due to no loaning history, you can apply for a zero annual fee Credit Card.
      Card suggestions:
      • HDFC Bank World Master Card: Zero annual fee
      Reward Rate: 0.60 (2 Points= Rs. 150)
      Many privileges
      • Maruti Suzuki NEXA HDFC Bank: Zero annual fee
      Reward Rate : 2.25 (3 Points= Rs. 150)
      It will help you build a credit score just by maintaining the monthly payments with no annual fee.
    3. Keep credit card balances low, as high outstanding can get you in trouble.


  • CIBIL is an important number which suggests your credits in your account. If you want to get loans and other benefits from the bank then you must have to maintain a good score for your account. I am sure this post will help you a lot for knowing more about it. Thanks



  • @landpel It helped indeed. Who will know it better than me , because I was not aware of this till 2012. When my home loan got rejected first in 2012 how come it can happen. Then i have learned the hard core truth about CIBIL report and took me 6 months to bring it back from 500 to 720.



  • @kvijay12345 Happy to know that you got over the Score issues. Infact, many people in India are unaware that India is also going the west way(even much stricter in granting the loan/credit amounts) when it comes to maintaining the credit score. Maintaining a healthy score is a must in India



  • @jatinderchd Its needed as well. NPA issues are affecting the GDP growth.We are lucky that we have regulating bodies like RBI,SEBI to protect us from many of these issues.



  • I second with your point that we are lucky to have RBI, SEBI, IRDAI and other regulatory bodies. But, the looming question of how loans are given to big businessmen? How, their business are not flagged or highlighted when they start to turning into NPA?


 

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