The CIBIL report helps understand the financial health of a person. If you want to know all about building a good CIBIL score range and what it is, keep reading.
Learn More About: How To Increase CIBIL Score From 600 To 750?
The CIBIL score is a three digit number that shows your creditworthiness. The credit score generated by the CIBIL is most commonly used in India.
The higher your CIBIL score, the better it is considered. A good CIBIL score gives you more power to negotiate when you are applying for a credit product. It makes it easier for you to get higher loan amounts with lower interest rates.
CIBIL scores are calculated on a range of 300 to 900. The higher your score, the better it is. But a score above 700 is considered to be a good CIBIL score.
Here is a detailed table that shows which is a good CIBIL score range to have -
| CIBIL Score Range | Creditworthiness |
|---|---|
|
750 - 900 |
Excellent |
|
700 - 749 |
Good |
|
650 - 699 |
Fair |
|
600 - 649 |
Needs Improvement |
|
Below 600 |
Immediate Action Needed |
CIBIL, which is short for Credit Information Bureau India Limited, also known as TransUnion CIBIL now is one of the deciding authorities.
It is authorized by the Reserve Bank of India to collect information from various banks, NBFCs, and other lending companies to generate a score for each borrower.
>You can check your own CIBIL score for free on their website. You can also get a detailed CIBIL report by paying a nominal fee. Every time you apply for a loan, the lender checks your score as well as your report.
Your CIBIL score depends on your financial behavior and you can follow steps to improve it. If you want to build a good CIBIL score, here are some tips for you -
Check your CIBIL score regularly
If you see any enquiries that were not authorized by you, or any errors, raise a dispute and get them rectified
Pay your credit card bills in full every month
If you are having difficulty paying the bill on a certain month, at least pay the minimum amount by the due date
Don’t miss the EMI payment dates for your ongoing loans
Take a variety of credit products instead of opting for only a single type of credit
Maintain your credit utilization ratio
Don’t take unplanned and whimsical loans
Plan your finances in advance by calculating the EMI for loans, before you apply for them
Having a good CIBIL score range can make it easier for you to procure credit as it builds trust for the lender. There are many credit bureaus that generate credit scores, like CIBIL and Experian. The CIBIL score is most commonly used in India.
The CIBIL score ranges from 300 to 900 and scores above 700 are considered good. A score above 750 is excellent and can help you get loans at lower interest rates. You can slowly work on your CIBIL score to improve it by paying your bills on time, and taking credit responsibly.
Yes, if you see any error in your CIBIL score, you can raise a dispute and get it corrected.
A score above 750 is considered an excellent CIBIL score range, but a score above 700 is good enough for most credit products.
No, the CIBIL score range is between 300 and 900, and it cannot be negative.
A CIBIL score of 1 means that there is no information available about your credit history. This score is also known as ‘NH’ or ‘No History’.
The simplest thing you can do to have a great CIBIL score is to start using a variety of credit products. Also make sure that you pay your EMIs and credit card bills on time. This way you can see your CIBIL score improving slowly but steadily.
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