Tag: Credit Score

Improve Credit Score For Getting Loan Approval – CIBIL Score Detailed

Have you got any plan to apply for a loan or credit card then you must focus on improving your credit score . Because in the process of loan application your CIBIL score plays a key role in approval of your loan . So you must know all about how important it is to improve credit score.

Know about Credit Score and ways to improve credit score.

Credit Score represents the creditworthiness of an individual by analyzing that individual’s credit files. Credit score is expressed numerically by mainly analyzing individual’s credit report from trusted credit bureaus of that country .

You may be very well aware about the fact that banks sanction loan for Good credit score . Apart from banks almost all lenders like credit card companies , government departments , insurance companies other departments also take into account of your credit score. They do this to avoid risk of lending money and to prevent loss because of bad debt.

Your credit score is evaluated by lender to determine your potentiality based on this the lender decides the interest rate and your credit limit also they estimate how profitable it is for them if they lend money to you.

Every country have different trusted credit bureaus . Likewise in India there are four credit information companies which are given license to function by Reserve Bank of India.

RBI Approved Credit Information Companies in India
Ø The credit Information Bureau(India) Limited (CIBIL)	Ø Experian
Ø Equifax	Ø Highmark

Though there are four licensed companies handling with credit information , CIBIL Score is considered as very important because The Credit Information Bureau (India) Limited (CIBIL) is the most oldest where the other ones are so recent.

CIBIL Report & CIBIL Credit Score.

CIBIL Credit Score is a 3 digit numbers that stands for representing an individual’s credit rating and credit history.

A person with no credit history gets a CIBIL Credit Score of -1.
Less than six months credit history will have a score 0.
General credit score range falls between 300 to 900.
900 is the best CIBIL Credit score

Higher your credit score , higher are your chance to get loans so its very important to improve credit score.

How to get CIBIL Credit Report

If you want to generate you CIBIL Credit Report you can do it easily by following this steps.

Go to https://www.cibil.com/ , this is the official website of CIBIL ( Credit Information Bureau (India) Limited ).
Click on “Get Your Credit Score” option as shown in the image.or you can also click on the “Get Yours now” .
Now this will direct you to a new page with CIBIL Online Credit Score request form.
Fill the form with the requested information and proceed to payment & select your payment mode .
You can pay using credit card or debit card or even via net banking .
Click submit after the payment is done . Now you will be requested with certain authentication information.
Once your authentication is completed successfully ,the process is done.

You will get your CIBIL Credit Report with CIBIL Credit score via e-mail within the next 24 hours.

How to Get CIBIL CREDIT Report Without a PAN Card Number

Visit CIBIL official page and click to check your credit score .
In the CIBIL Online Report form you can find an option with samll font below the PAN number option. Click that and you get a page like this .
Click there you will be asked to fill other information and attach identity proof .
Just fill up the form and pay for it .
Complete the authentication process successfully .

You are done with it , there you receive a e-mail within next 24 hours.

How your Credit Score is Calculated

Your CIBIL Credit score calculation is done on the basis of taking into account of certain factors. Primarily your payment history is taken into account whereas your repayment history record holds a weightage of about 35% while calculating credit score.

CIBIL score calculated based on these –

Total credit balance available.
Your total number of loans.
Number of credit cards you possess.
Balance between Secured and unsecured loans.
Your credit utilization.

You can calculate your CIBIL score online easily as we have given the detailed step to calculate your CIBIL score.

Good CIBIL Credit Score – Know your credit Health

Credit Score	Credit Health	Rate of Interest	Chance to get Loan (Green- high chance Yellow-moderate Red- very less chance)
750-900	Excellent	Competitive rate of interest that is less rate of interest	Green
700-750	Fairly good	Competitive rate of interest that is less rate of interest	Green
550-700	Low score	High interest rate	Yellow
300-500	Very low score	Very high interest rate	Red

This how your credit score determines your credit health and thus based on this relies your chances of getting loan when you apply for loan.

How to increase your Credit score fast -Tips for Improving Credit Score

You must have a good credit score for easy sanctioning of loans so know how to Improve Credit Score

Know your Credit score by taking a credit report
Pay your EMI and payments on time
Mix your credit ( Unsecured & Secured credit)
Limit your cards
Limit your loans
Don’t exceed your credit limit
Don’t apply for loan or credit soon after its rejection.
Reduce the frequency of taking credit
Stop settlement of loans and credit cards

Take a look at where you stand before applying for a loan . You can check your CIBIL Credi score online through their official website within 24 hours of application. The most important factor that can improve credit score is by maintaining a good credit history by paying your bills and EMI’s without delay . Be on time with your payments always. If you maintain a mixed bag of unsecured as well as secured loans means this will help to increase your CIBIL credit score quickly.

Many of you will be having so many credit cards but to those people here is a strict advice . We strongly recommend you to reduce your number of credit cards because lesser the number of credit cards you own higher is your CIBIL credit score. Don’t take too many loans unnecessarily as it will give a bad impression on your potentiality to repay loan .Thus keep your loans in limit to increase your credit score .Also reduce the frequency of taking loans for maintaining a good credit score.

If you have applied for a loan and for some reasons if your loan application gets rejected then don’t apply for loan again without improving our CIBIL score .

These are the ways to improve your credit /CIBIL score fast.

What is the good Credit Score for getting loan approval easily.

If you are looking for a personal loan , then banks look for high CIBIL Score . This is because personal loans are generally high risky for the lenders as it is unsecured loan.

If you are looking for secured loans such as home loan , then you need comparatively less credit score than what you must require for taking a personal loan or car loan.

Find out the general credit score for home loan, car loan and personal loan.

*Loan Type*	Personal Loan	Home Loan	Car Loan
*Minimum CIBIL Score/ Credit Score*	750 and above	700 and above	750 and above

So always maintain a CIBIL Credit score which is fairly above 700 for getting easy loan sanction.

Factors that will influence your Credit score negatively .

Increased Credit Limit
Irregular payment history of delayed EMIs
High percentage of Unsecured loans(personal loans)
So many credit cards
Multiple loans
Standing as guarantor for someone in the past who didn’t pay back the loan amount.

So this is all about you Credit score which is so essential thing you must know when you have a plan to apply for a loan . So follow the steps listed to improve Credit score.

August 17, 2024

Quickly increase credit score in just 12 months -Easiest hack
Credit Score is a term popularly used in the western countries especially in USA. If you are living in USA, you must have heard the name and know its importance already. Credit score plays a major role in your personal finance decisions in USA.Not just in US ,everywhere nowadays credit score matters . So everyone is in search of ways to quickly increase credit score .

Credit score is nothing but a three digit number assigned to an individual to evaluate his/her financial ability for repaying loan / mortgages. It can have a minimum value of 0 and maximum value of 850. The higher the value of credit score, the person’s ability to repay is good. If the credit score is lower, it means the person’s financial ability is not great.

Quickly increase credit score in just 12 months -Easiest hack

Given below are the values of the credit scores and their meanings.

Credit score >750 –Excellent
700-749 –Good
650-699 –Fair
550-649 –Poor
<550 – Bad

It is always advisable to keep your credit score in Good or Excellent i.e your credit score must be greater than or equal to 700.

Read more : Improve Credit Score For Getting Loan Approval – CIBIL Score Detailed

Why your credit score should be good?

You may be wondering why your credit score should be good and how it helps. A good credit score is very important in getting personal financing like car loan, housing loan, mortgages etc. For eg. If you want to buy a house or car, you will be applying for a loan. If your credit score poor or bad, your loan application will be rejected and you won’t be eligible for a loan. If your credit score is fair, you may get a loan but with higher interest rates. On the other hand, if your credit score is good or excellent, you will get a loan with reduced interest rates which will save you a lot of money. That’s why it is very important to maintain a good credit score.In short, if you want to get any personal finance from any provider, your credit score needs to be good or excellent.

How credit scores are calculated?

You need to know how credit scores are calculated before you try to improve it. The various criteria used in the calculation and their percentage are given below:
- Your History of payments – 35%
- Total amount owed by you – 30%
- Length of your credit history – 15%
- No of new credits – 10%
- Various types of credits used by you – 10%
How to increase your credit score from 550 to 750 in Twelve months?

Now the biggest question is how to increase your credit score from poor to excellent quickly. If some company or person tells you, that they can help you to increase your credit score within a month or 3 months, don’t believe that. It is not true. It will take at least an year to build your credit score from poor to good and it takes lot of steps which has to be followed correctly and on time.

You might have seen lot of advertisements in internet saying “Get your free credit report within 30 minutes”. Check those advertisements and obtain a free copy of your credit report from them. After going through the report, go through it completely with patience and make sure all the information in the report are accurate. For eg. A payment entry might be missing or printed on a wrong date. If there is any error, you can raise a complaint with the credit bureau and get help. If there are no errors, follow these below points to Quickly increase credit score in just 12 months .
- Pay credit card bills / loan repayment on time:
You should never miss a payment or pay it very late to keep your credit score good as the payment history contributes the maximum in the credit score calculation. Make sure of the auto pay facility from your banks or you can set payment reminders / alarms using any app. Or simply make a note of your payment dates in a calendar or a sticky note.
- Don’t use too many credit cards:
  
  Many people get new credit cards to increase their credit score quickly. But in the long run, if the credit cards are not used regularly it will affect your credit score. If you want to Quickly increase credit score then you should be very much careful about the usage of credit cards. To build your credit score, you cannot keep your cards idle for long time. Don’t open new credit card accounts unless there is really a need.
Read Also : Pros and cons of credit cards – All the Hidden Facts on Credit cards
- Clear debts and Keep minimum balances:
Clearing your debts regularly and keeping only minimum balances in your credit card will improve your credit score. You only have to pay less interest as the debt amount is low. Check the amount you owe for each credit card every month and make plans to pay it quickly. If you are not repaying the amount and keeping it same will reduce your credit score.
- Don’t close credit cards:
Closing your credit card will not help you in increasing the credit score as it will still reflect in your credit report. Instead of closing it, use occasionally or for small regular purchases.
- Organize usage of credit cards:
The best way to manage credit cards is to use it regularly.Organizing credit card is one of the best way to Quickly increase credit score. You will definitely have a regular expenses every month like paying rent, electricity, water, mobile etc. Prepare a table of all your regular expenses and allot your credit cards against them so that all your credit cards are used and nothing is idle.
- Pay your bills more than once if needed
If you have used your credit card to the near limit, it is good to repay two times in that month so that you won’t get much interest for the remaining amount and will also help to improve your credit score as you have made the repayment quickly.
- Increase your credit limit
If you have some financial problem and have used the maximum limit for your card, but could not repay it, then request your credit card company to increase your credit limit and keep the increased amount idle till you repay the debt. In that way, you can avoid a decrease in your credit card score.

It is not a giant task to maintain a good credit score. Anyone can do it provided you spend some time regularly for organizing your credit cards, planning and making payments on time.
July 13, 2024