“What is CIBIL?” This is one of the most frequently encountered questions regarding credit scores. CIBIL full form is The Credit Information Bureau India Limited. It is a licensed company that records the user’s credit information.
The term credit scores are often referred to as CIBIL in India. It is a three-digit number ranging from 300-900, which includes all your credit history and ratings. Your CIBIL score tells you creditworthiness or how effectively you use credit. The answer to the question: “How check credit score?” is to. You can do it on the Bajaj Finserv website for absolutely free.
What does it mean by a good credit score?
The closer your credit score is to 900, the more creditworthy you are.
- A 300-500 CIBIL score range is considered poor and needs to be upgraded immediately.
- If it ranges between 550-650, it might be considered average.
- A range of 650-750 is a good CIBIL score
- And anything above that is considered the best credit score.
Ways to improve your credit score
Now that you can effectively answer what is CIBIL, read further to learn more about it. You can boost your credit score by following these quick methods and suggestions:
- The most important thing you must do is always to settle your dues in time. Set reminders if necessary and stick to organized payments. Failing this will have a very negative impact on your credit score.
- Try only to take the amount in mentioned limits as it will lower your credit score. Also, don’t apply for new credit unless you have secured plans to repay them.
- Check your credit reports periodically because your report might have a few mistakes. You can submit a resolution form online in case of any problems.
- Use credit monitoring services which will help you to keep everything balanced.
- Maintain a good credit history by mixing different types of loans correctly.
- Become an authorized user. You can ask a known individual with a good credit history and timed due payments to make you an authorized user.
There is no way to determine how long it will take to improve your credit score, but following these suggestions, you will have a healthy score over time.
Maintaining a good credit score is usually recommended, especially if you plan to take a loan. Your CIBIL score decides if you will be approved or rejected for the loan or new credit service. These methods listed above will guide you through planning your financial practices effectively.
Additional Read: How to Login to Check your CIBIL Score & Credit Report ?