We always hear that the bank or any financial company does not lend when the credit score is poor. Credit cards are also not formed due to a poor credit score. The loan is based on the creditability of a person. Credit Information Bureau India Limited (CIBIL) offers you a score between 300 and 900 points. It is decided on the basis of how much your earlier credit card usage is, how you keep your bank account, no cheque has bounced, existing loan, existing loan without insurance, loan repayment, and how many times you have applied for a loan or credit card. Those who have a CIBIL score of more than 700 are easily able to get loans. Therefore, you must improve your score.
A credit score is also called the CIBIL score in common colloquial language. In India, it was first started by the Credit Information Bureau of India (CIBIL). Initially, money had to be spent to take it. But it now gives you free every month. Currently, there are four companies in the country which provide credit scores. These companies are Crif High Mark Credit Service, Equifax Credit Service, Experian Credit Service, and Trans Union Cibil Ltd. You can get free every month from these four companies.
You can easily know your credit score. On Cibil's website, you can easily find credit scores. It will have to go to www.cibil.com and fill up the online form. You will also have to pay Rs. 550. Once the authentication is processed, you can download Cibil scores and reports. The EMI of the loan will be fixed as per the score given by the Credit Information Bureau of India (CIBIL). Suppose you have applied for a home loan in a bank and the bank's interest rate is 8.35 percent, if your score is above 760 points, you will get a home loan at an interest rate of 8.35 percent.
At 725 to 759 points, loans will have to be 8.85 percent and at points below 724 at 9.35 percent interest rate. If you are applying for a loan for the first time or have no credit score of any kind, the bank will charge you interest at the rate of 8.85 percent. Your Cibil score depends on various factors. The 30 percent CIBIL score depends on whether you are repaying the loan on time or not. 25 percent depends on secured or unsecured loans. 25 percent depends on credit exposure. 20 percent relies on the use of debt.
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