CIBIL, Credit Information Bureau India LTD, is an Indian credit bureau that produces your credit report containing all your credit information. It is an RBI authorized agency and is the most trusted company that has everyone’s credit information. Your CIBIL points, presented in your CIBIL reportis also generated by this organization.
CIBIL school and its importance
The CIBIL score averages between 300 and 900, with 300 being the lowest and 900 being the highest score. Banks and financial institutions use this measure to assess your creditworthiness when you apply for a personal loan or product.
The CIBIL School is important because the lender will decide to lend you a loan based on CIBIL’s good points.
A few things that make up a CIBIL report:
Timely payment of debts
Staying within the credit limit
Number of loan applications at one time
A mix of credit
The length of your credit history
Total outstanding debt
The CIBIL school contains a range of between 300 and 900 scores. Here is a table that gives you an overview of what the whole list means and how the lender views you:
Debit credit worth what it means
NA / NH Not Available or No History If you have never used a credit card or borrowed money before, you have no previous credit history.
300-549 Bad Many often miss or borrow late EMIs or credit card payments, additional credit inquiries or exceed credit limit. Lenders may not approve your application to this school.
550-649 Fair. You may have missed some payments or had multiple card inquiries. Lenders may not agree. However, they will charge higher interest rates and lower fees if they accept your application.
650-749 Good Good healing history and low risk of rejection. But lenders won’t offer the best interest rates just yet.
750-799 Very good A long and general credit history with proper repayment. You’re a lower risk to lenders, so you’ll get better approvals and deals.
800-900 Very good You have a good credit history, regular payments and low credit consumption. You will find the best offers on credit cards, advantageous terms and interest rates.
What is the best CIBIL school?
CIBIL score is considered good if it exceeds 700-750. But remember that every lender has their own way of considering risk scores. For example, if one bank sees 700 as low risk, the other bank does not need to consider the same distance.
What is a bad CIBIL school?
Anything less than 600 is considered a negative result by CIBIL. No lender will be able to repay you if you don’t pay on time or if you have a limited credit limit. You will have difficulty getting a loan, and even if you do get one, you will have high interest rates and you will not be able to flex your repayment options.
However, nothing can be fixed. If you have a CIBIL primary school, there is no need to worry; it will not always be the same if you are trying to improve your cibil score. This will happen if you keep track of your report and analyze what your financial practices are preventing you from getting good CIBIL scores.
The Importance of a Good CIBIL School
If your school is better, the lender may trust you more for money. Measure your payment amount through your CIBIL school, then if you have more than 700 points, you have a better chance of repaying your debt on time.
Without authorization, it is also important to keep good points in this regard:
The process for applying for a quick loan
A low interest rate on personal loans and business loans
To reach a high loan rate
Extensive options during payment
Lots of options in choosing lenders
Therefore, you will benefit greatly if you maintain good CIBIL points.
Now that you know the difference between the positive and negative effects of CIBIL and why the CIBIL score range is important, you need to make honest financial decisions that won’t lower your score. Make payments on time and check your score regularly to keep track of your destination.
Shiv Nanda is a financial analyst currently living in Bangalore (refuses to accept a name change) and working with MoneyTap, India’s first credit-based credit limit application. Shiv is an expert in finance and his friends love it. They always depend on him for advice on their investment options, budgeting skills and personal financial issues when seeking a loan.