Everyone wants to take a loan to meet their needs. Whether you will get the loan or not depends on your credit score or CIBIL score. The CIBIL Score or Credit Score of any person shows how much loan that person can get because CIBIL score shows your ability to repay the loan, without a good CIBIL score the bank cannot give you a loan.
What is Credit Score – What is CIBIL Score or Credit Score?
CIBIL Score works like your credit report card. This is the loan done by you in the past and Credit Card It is a report or score generated on the basis of repayment and other financial transactions that reflect your loan repayment capacity.
Any loan taken by you in the past and how you have repaid that loan is known in CIBIL Score or Credit Score. The CIBIL Score depends on the loan taken earlier and the mode of payment of your credit card. CIBIL Score tells you how much loan you should get and how much loan you can repay.
Why is CIBIL Score Important?
CIBIL Score is very important, if you go to the bank now to take a loan, then first the bank will see your credit score, later it will think about giving you a loan. Loan is of great importance in the life of a businessman or entrepreneur, but credit score is very important for loan, if your credit score is good then bank will give you loan very easily and quickly.
How to Determine Credit Score – Computation of Credit Score
Your credit score is mainly calculated by credit rating companies. Four companies mainly in the field of credit rating in India – CIBIL TransUnion, Experian, Equifax and High Mark work | in India CIBIL (Credit Information Bureau India Limited) First started the credit rating work, so it is the most popular, although the reports of all credit rating companies are almost the same.
Whenever you do any such financial transaction which is important for credit score, then according to the rules of RBI, the bank sends the information of such transaction to these credit rating companies. On the basis of the information received from the bank, credit reports are prepared by these companies on the basis of various parameters. Whenever the bank has to check your credit score, they can take your credit report or credit score from these credit rating companies.
How to Check Credit Score – How to Check CIBIL Score?
Every person wants to know his credit score or CIBIL score while taking a loan because he wants to find out from his CIBIL score whether he will get the loan or not. Currently, there are many websites that allow you to check your credit score for free, otherwise you may have to spend around Rs 500 to 1500 for complete information about your CIBIL score.
Knowing CIBIL Score is an important task for an individual or entrepreneur as it shows what is his/her current status, you can follow the following steps to find out CIBIL Score.
- To check CIBIL score or credit score, you have to visit the main website of CIBIL.
- After visiting the website, you will be asked for some information like PAN card, Aadhar card etc.
- After giving the information, you will be asked some questions related to loan, credit card and later you will be told the CIBIL score.
Apart from this, you also get the facility to know CIBIL score 2 or 4 times in a year, at present it is very easy to check CIBIL score and you can visit the website of credit rating companies. Online Credit Score Check can do There are institutions in the market that check credit score for free.
Good Credit Score Range For Loans – What should be the CIBIL score to get the loan?
You can get a loan only on a good credit score and a level is required for a good credit score, so we are dividing the credit score into 3 parts.
- less than 650
- Between 650 to 750
- over 750
CIBIL score less than 650 But the bank cannot give you a loan because this level of CIBIL score is considered bad, if you want to take a loan and your CIBIL score is less than 650 then it is very difficult for you to get the loan or the interest rate of the loan you get and Other conditions will be very strict.
Credit scores between 650 and 750 Banks think more about giving loans to people because they neither come in bad credit score nor in good, they come in between these two, so banks give loans to these people only after complete information.
CIBIL score above 750 But the bank gives the loan very easily because this type of CIBIL score is considered good, if you have applied for the loan and your CIBIL score is more than 750 then the bank will provide you the loan as soon as possible.
If your CIBIL score is more than 750 then you will not have any problem in getting the loan but if it is less then you may get some delay or difficulty in getting the loan.
If your credit score is more than 650 then it is considered good, but if it is more than 750 then it is considered very good. A credit score below 650 is considered bad.
Cibil Score gets updated within 40 to 60 days.