Importance of CIBIL score | Good or Bad

    

Civil score- Techsesh sagar

Hello guys, welcome to Techsesh sagar and today we will discuss about CIBIL score,  what is it’s significance, what is  good and bad CIBIL score and how you can maintain and improve your CIBIL score.

WHAT IS CIBIL SCORE?

A CIBIL score also known as credit score is a three digit numeric number given by TransUnion CIBIL limited which is a credit information company that provides credit data of more than 600 million customers and it is a part of multinational company TransUnion. CIBIL(Credit Information Bureau Limited) is basically company that maintains credit record of every individual and corporate company, in laymen language you can say  that they keep a record of all your secured(home loan, all low risk loan) and unsecured(personal loan, credit card) loan and then they generate a three digit CIBIL score that can be accessed by any bank in the world. In short CIBIL score provides bank your credit repayment history and by this banks decides that can they give you loans. All banks and financial institution share their data with CIBIL.

GOOD AND BAD CIBIL SCORE:

CIBIL score generally ranges from 300 to 900, if your score is at the bottom then it will be tough for you to get a loan and even by chance if you will get a loan then it will be of generally high rate of interest. If you have credit score greater then 750 then you can easily get loans at low rate of interest(usually 7.5% to 8%) , and as it shows that your repayment history is good so you can easily get your own credit card. However if your score is less then 750, you can still get a loan but you cannot enjoy all the advantages and facility given to customers of credit score greater then 750. You can check your CIBIL score easily on various websites and it is totally free of cost. In fact TransUnion CIBIL says 74% of Indian consumers check their CIBIL score twice a year.

HOW TO MAINTAIN CIBIL SCORE?

CIBIL score generally consist of  your loan repayment history, how many times do you take loan like for example if you take loan more often then it may decrease your CIBIL score. It also depends on the types of loan you take, if their will be a variety in the loan you apply for like if you have applied for home loans, car loans or personal loans then your CIBIL score will increase. If you will repay your EMI’s , credit card loan or any loan on time you can easily maintain a CIBIL score of 750 or greater then 750.

I hope this information will help you in your financial matters and please subscribe Techsesh Sagar for more financial and technological matters.

Author: Sagar Shukla

Technology Consultant at Techseshsagar.com

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