What is CIBIL? How to improve CIBIL score?



  • 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?



  • @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.


 

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