Your CIBIL score is a three-digit numerical representation of summary of credit history. It comes from the records of financial institutions and banks, which reflect in your credit report. The credit score range is between 300 and 900. Any score more than 750 is considered as plausible for securing credit card and loans from banks and institutions.
It may seem tedious to maintain a good credit score. However, if you adhere to healthy financial practice by paying credit card bills, EMIs, and loans in time, make only genuine credit enquiries, then your credit score will strengthen. The score in your credit report holds importance when you apply for credit card, loan, house for rent etc.
How to Strengthen your CIBIL Score?
The payments you make towards loans or credit cards have the greatest impact on your credit score. If you falter, delay or miss payments then the financial negligence will lower your credit score. A low CIBIL score will disallow you from availing credit at nominal interest and in worse cases; you won’t be able to receive approval on credit request.
You must repay outstanding credit amounts in time, because it leaves a good impression on lenders. Also, by systemizing payments you get to reduce financial burden. A healthy financial history makes for clean economical track record, and defaults in the same are expressed in your credit report. Six months of your financial history is the minimum that is considered when calculating your CIBIL score.
Here is the list of CIBIL Score Range and its Significance:
A CIBIL score varies between 300 and 900
0 or -1
If you do not have any credit history via credit card payments or loans, then you will be assigned the credit score of 0. To create your CIBIL score, consider starting a credit card transaction or take a loan, and repay the EMIs meticulously.
350 – 550
If you secure a score in this range, the CIBIL score will be counted as bad, which means you may have defaulted in repayments or payments, and may not be able to secure new credit cards and loans.
550 – 650
If your score is between 550 and 600, then your score is fair, yet not good. Try making regular payments and you have the potential to increase the CIBIL score and gain back the trust of lenders and credit card companies. Your loan request may not be necessarily rejected, but approval chances are low.
650 – 750
With a credit score in this range, you can be considered as eligible for credit card and loan approval. Continue making payments and repayments on time to keep up the score and better the same.
750 – 900
If you have a score of 750-900, it means you have been following sound financial practise and regularly paying off credit card bills and loan EMIs. Any bank, NBFC, lender and financial institute will be more than willing to offer you credit card and loan.