If you’ve ever dipped your toes into the world of loans, credit cards, or any kind of borrowing, you might have come across the term ‘CIBIL Score’. But what exactly is this mysterious number, and why does it matter? Let’s dive in!

First things first, what does CIBIL stand for? It’s Credit Information Bureau (India) Limited, now known as TransUnion CIBIL, India’s oldest and largest credit bureau. It calculates the credit score known as the CIBIL Score that lenders use to determine how likely you are to repay borrowed money. The score ranges between 300 and 900, with a score of 750 or more generally considered ideal.

Why It Matters

• Loan Approval: Lenders use your CIBIL Score to decide whether to approve your loan applications. A high score means you’re a responsible borrower, increasing your chances of approval.
• Interest Rates: Your score also affects the interest rates you’re offered. Higher score? Lower rates. A lower score might mean higher interest payments – yikes!
• Credit Limits: Need a higher credit card limit? A good score can make that happen, giving you more financial flexibility.

A lower CIBIL score or TransUnion score can pose many hurdles in your credit quest. Not only is there a risk of rejection, but also the chances of being saddled with high interest rates and shorter terms. Lenders might also impose stricter terms and conditions to offset their risks, such as requiring collateral or a co-signer for your CIBIL Score TransUnion.”

How To Boost Your Score

• Pay bills promptly
• Keep credit utilisation lower than 30% of available credit
• Maintain a mix of credit
• Avoid too many applications and the resultant hard enquiries 
• Check your report regularly for errors and rectify them promptly

To help you on this journey, consider the Bajaj Finserv Credit Pass, which provides you a comprehensive overview of all your credit accounts so you can track your credit health report in real-time, monitor your credit factors, and get monthly updates to your CIBIL Score. Sign up today and enjoy the first year of Credit Pass, completely for free*!

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The Guide to a Good CIBIL Score: Unlocking the Gateway to Financial Success

From Mistakes to Milestones: The Journey of Your Credit History

Read This To Check The CIBIL Score Online For Free