What is the CIBIL score?
We refer to a CIBIL score as an individual’s credit payment history across many loans and credit institutions. It is based on past borrowings and repayment practices regularly shared by the bank. The closer your credit score is to 900, the better; anything below 700 should be taken seriously. It is calculated using credit data from the previous 36 months. It is built on 36 months of credit history. However, your credit score cannot be swapped nightly. It would help if you made more or fewer changes in your financial habits to make a notable difference.
8 Most Effective Tips to Improve Your CIBIL Score
Best Ways to Improve Your CIBIL Score – Easy Steps
1. Pay your dues on time
2. Check your credit report
3. Keep a healthy credit mix
4. Limit your credit utilization
5. Boost your credit limit
6. Use credit prudently
7. Apply for new credit cards
8. Keep old debt on your credit report
The CIBIL score is also known as the CIR, i.e., Credit Information Report. The CIBIL score is gleaned using the credit history found in the CIBIL history. It is three-digit arithmetic concise of a consumer’s credit history and reflects a person’s credit history. It does not include the details of your investment, savings, and fixed deposit. The CIBIL Score plays a critical role in the loan application process. Payment history, credit mix of loans, inquiries, and credit utilization are the four primary elements that impact a consumer’s CIBIL score.