What is CIBIL? How to improve CIBIL score?
LandPel last edited by
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!
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.
Jagjit last edited by
@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 !!
Ritesh last edited by ftForumMod
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
Girish last edited by ftForumMod
@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.
prateek last edited by prateek
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.
Girish last edited by
@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
Anjali last edited by
@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.
Guest last edited by
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.
aditi-sharma last edited by
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?
- Most effective way is to pay your credit payments on time. Missing the due dates can contribute a lot in low credit score.
- In case your credit score has not yet generated due to no loaning history, you can apply for a zero annual fee Credit Card.
• HDFC Bank World Master Card: Zero annual fee
Reward Rate: 0.60 (2 Points= Rs. 150)
• 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.
- Keep credit card balances low, as high outstanding can get you in trouble.
LandPel last edited by
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
kvijay12345 last edited by
@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.
jatinderchd last edited by
@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
Guest last edited by
@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?
Abhishek last edited by
@harry Credit score of 750-800 is too good. Companies shall easily offer personal loans and premium credit cards, if we have such a high score. I wish I had such a great score. But, mine is a bit low now. I am trying to increase my score by following good credit habits like not using too much of my credit card and paying credit card bills regularly.
Sahil last edited by
@prateek "Get a decent card" but how? This is a big question these days. There are too many choices to make from. How to select which is a decent card? Looking at so many credit card offers I usually get excited. But, I am confused which one to select. I want to build a good credit score to avail a good loan amount.
KP_Trader last edited by
Keep your credit utilization ratio up to 30 per cent or lesser. Doing this will give a positive impact on CIBIL score. My two cents.
Anmol last edited by
@KP_Trader Hey, that seems to be a cool idea! But, is it practically possible to keep the credit utilization ratio below 30% for that matter? I mean, in such a high cost of living, growing prices of products, our rising utility bills, is it really manageable to use lesser credit options?
The salary credited to my account is just spent on paying EMIs and some other normal costs. So, I have to rely on my credit card to pay other bills and fees. I pay my bills on time.
But, I am still struggling to get that perfect credit score since the past few months. I really wonder how people just manage to have a high credit score. Any ideas for it.