Mumbai: CIBIL is one of the leading Credit Bureaus in India. Credit Bureaus generate credit reports of individuals based on their credit score. CIBIL Score is a three-digit number. This ranges between 300 and 900. The report containing this score is called CIBIL Report.
Usually banks classify their customers according to their credit scores. The higher the score, the better it is. Generally, a score above 750 is considered good. People with good score will get loans easily.
The CIBIL report allows the bank to have a look at a person’s credit history, including whether the person has ever defaulted on any of his/ her previous debts. It also shows how many loans has the person taken so far, including the amount and the duration of the previous credits.
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Easy ways to improve CIBIL Score:
1) The credit utilisation ratio should be limited to 30% for a good CIBIL score. So get a credit card with a higher top limit.
2) Repayment of loans or credit card dues has a very big impact on CIBIL score. So, any loan or credit card dues must be repaid within time to maintain a good CIBIL score.
3) It is better to diversify the loan portfolio with a good mixture of both secured and unsecured debt in order to get a high CIBIL score. A credit card is an unsecured debt, whereas a home or vehicle loan is a secured debt.
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