What is a Good CIBIL Score?

A loan can help you fulfil your needs and accomplish your dreams. You can do a CIBIL score check online after a CIBIL score login and learn about your credit report. But, what is a Credit score and how to improve it?

Let us find out!

What Is A CIBIL Score?

CIBIL score indicates the credit worthiness of an individual. This three-digit numerical expression ranges from 300 to 900. It is based on a thorough analysis and examination of the individual’s credit files and history.

You must know and check your credit score as it is the most critical factor in getting a loan. Lenders look at your credit score before lending loans and issuing credit cards. Therefore, borrowers should regularly do a CIBIL score check.

Your credit score is significant because it illustrates whether you are a risky or reliable borrower. As a result, it immediately affects your loan eligibility, the loan amount the lender will offer you, and the interest rate. Lenders can assess the potential risk of lending money based on your credit score. Regarding any loan, your credit score is essential and significantly influences your eligibility for personal loans.

What Is A Good CIBIL Score?

Now you know what a credit score means. But what is a good credit score, and what is a bad one? What happens if you have a good CIBIL score, and is it harmful to have a bad CIBIL score? Let us check!

Good credit score: A credit score between 700 and 900 on the CIBIL scale is good, as it gives the lender confidence in you and demonstrates your strong creditworthiness. A CIBIL score of 750 or higher is considered an excellent CIBIL score for an unsecured loan. Any borrower with a good CIBIL score is more likely to receive the best interest rate and benefits from a quicker loan approval process. In the long run, it helps you save money and time. A score between 700 and 900 is undoubtedly excellent and most likely to get you the desired loan.

Bad credit score: Any credit score below 650 is not good. It won’t provide any confidence to your lends for your loan applications and credit cards. Such a poor score will probably lead to rejection of your applications and further bring down your score. Therefore, you need to know ways to improve your credit score. You can perform a credit score check and learn everything you need to improve your credit reports.

Factors That Affect Your Credit Score

Many things play a significant role in your final credit score. Here are a few of them:

  • Timely payments: Always pay your bills on time. It doesn’t only apply to credit cards; other accounts, like cell phones, may also have late or missed payments that are reported to the credit bureaus and affect your credit scores. Contact the lender right away if you’re having trouble making a payment. Even if you’re disputing a bill, don’t skip payments.
  • Clear your overdue bills: Attempt to pay off your debts as soon as possible.
  • Utilise your credit limit: Keep the balance on your credit card well below the cap. Your credit score can be low if you have a balance that exceeds your credit limit.
  • Limit the number of applications: Use credit applications wisely. The number of credit accounts you apply for in a short period could affect your credit score.

You can work on the factors mentioned to maintain or improve your credit score. To check your credit score, perform a CIBIL score login using your credentials.