Home Free Cibil Score 11 Major Factors That Affect Your CIBIL Score

11 Major Factors That Affect Your CIBIL Score

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11 Major Factors That Affect Your CIBIL Score

Here are 11 Major Factors That Affect Your CIBIL Score

It is a big hassle for most people to get a loan and I think it’s a long and serious process. The whole process may take years and your debt may be before the end of years is finally accepted. Reasons for approval or rejection are a critical task for newcomers to this scene. Banks have become more and more difficult to apply for loan applications and a good CIBIL score may go a long way in getting that loan.

What is Cibil?

Credit Information Bureau (India) Limited or CBIL is commonly called India’s first credit information company. They have to collect and maintain payment records of individuals and businesses related to loans and credit cards. These records are used to create credit information report (CIR) and credit scores. Banks and lenders use these scores to assess and approve loans.

The CIBIL score serves as a gateway to determine how vital the person is on his / her payment to credit institutions. It is required to repay the loan based on the previous models of credit use and credit behaviour. The CIBIL score is 300 to 900. Credit close to the 900s indicates credibility and it is possible to get a more favourable response from credit institutions, but the score close to 300 indicates very little reliability, refusing.

A benchmark can be based on how the CIBIL score performs their credit.

Here is it to know about  – All About Cibil Credit Score and Loan Basics

Factors affecting CIBIL score


Read this guide on – Know more about cibil loan approval process in detail?

 A CIBIL score may be accepted or rejected by the difference between your loan application. Here are some key elements that affect your CIBIL score.

Repayment history – If you have a timely payment history, it will reflect more on your CIBIL score. Clearing of all dates and liabilities clearing will expire on CBIL score. Any unpaid payments or overdue payments reflect exactly on the score as you indicate that your responsibilities are difficult.

Credit Limits Usage – Credit Cards today provide high credit limits and if you are using this limit, it will reflect your CIBIL score correctly. Higher consumption of available credit limits indicates increased returns. Stick to the bottom of the limit, in this case, your score may be increased through the roof. It pays not to use too much credit in this case.

Debt Surveying Time Period – The time you used credit in calculating the CIBIL score is an important factor. It increases your score if you guarantee a lender for a long-term loan and a timely payment.

A high percentage of credit cards or personal loans – a person with high-security loans (home loan/auto loan) have a positive score compared to people with more insecure loans. The most expensive form of an unsafe loan credit and higher interest rates are higher due to the higher payments, as the number of insecure loans is higher. The person with more insecure loans has a lower score.

Credit applications – People today apply credits cards thinking many loans and more credit means a better lifestyle. This appetite adversely affects the CIBIL score for more credit. Please be aware that credit companies are constantly applying for more credit or just a new loan granted. This behaviour indicates that the individual’s debt burden has increased and they have the opportunity to respect any additional debt.

Loan Officer – A person who works for a friend/relative liabilities can lose points on the CIBIL score. Failure to pay the applicant loan increases their responsibilities. Can not repay loans for a guarantee, CIBIL will significantly reduce the score.

Debt settlement – There are cases where individuals can not afford the debt. This reflects poorly on the CIBIL score and it will get a loan after it is very rare. Banks are likely to reject the loan request from such individuals completely.

Credit mix – A healthy combination of credit and debt will vary for managing credit. Without a credit, the person with a single debt has a poor score.

Reducing the number of credit cards – Reducing the number of credit cards can be expected to improve their CIBIL score, which is just the opposite. Revoking a credit card will reduce the total credit limit and increase credit use. Suppose you have 5 credit cards with a credit limit of 300,000 rupees and 50,000, and two of them surrender. This gives you a credit limit of 200,000 rupees. Your credit utilization ratio changes from 16.66% to 25%.
This has a negative impact on the CIBIL score.

Not using a credit card – many people feel that using credit cards can result in high cost and bad credit habits. The credit card of the person in the credit bureau is inactive if it does not have any credit transactions or transactions. This reduces the CIBIL score of the person.

The credit report is not checked – banks are likely to mislead the credit report. This ensures that the bugs are on record and that the CIBIL score may have a bearing. For example, the past delay may have a payment, which still shows in current reports. Without correction, it greatly affects the credit score.


Know more about – What is a Credit Information Report (CIR)?

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