CIBIL score plays a crucial role in determining your creditworthiness and can significantly impact your ability to secure loans and favorable interest rates. A higher CIBIL score reflects a healthier credit profile, making understanding the key factors that can positively influence your score imperative. By recognizing what is good CIBIL score and incorporating them into your financial habits, you can take proactive steps to improve your creditworthiness.
What Is a Good CIBIL Score?
A good CIBIL score typically refers to a high credit score maintained by an individual or a business in India. CIBIL scores range from 300 to 900, with 900 being the highest possible score. A good CIBIL score generally falls in the range of 750 to 900. A high credit score indicates that an individual or business has a strong credit history and is more likely to be considered creditworthy by lenders. Here’s a breakdown of CIBIL score categories:
- Poor: Below 550
- Fair: 550 to 649
- Good: 650 to 749
- Excellent: 750 and above
Top Factors Influencing Your CIBIL Score Positively
- Timely Repayments: Several factors determine what is good CIBIL score, and one of the most important factor is your payment history. It’s all about how well you pay your credit card bills and EMIs on time. When you make regular and timely payments, it proves that you are a reliable borrower. This habit of consistent payments can have a big positive impact on your CIBIL score, helping it to improve significantly.
- Low Credit Utilization Ratio: The credit utilization ratio refers to the proportion of your available credit that you have utilized to the total credit available. If you have used 20% of your total credit, your credit utilization ratio would be 20%. Maintaining a lower ratio enhance your credit score, which indicates your creditworthiness. It is advisable to avoid exceeding 30% of your overall credit limit to keep your credit utilization ratio healthy to understand what is good CIBIL score.
- Balanced Credit Mix: Maintaining both secured and unsecured loans can enhance your credit score. This means lenders see you as trustworthy because you manage various credit types well and also understand what is good CIBIL score. Secured loans are supported by an asset you own while unsecured loans don’t need collateral. Both types of loans managed responsibly, can improve your creditworthiness.
- Long Credit History: Banks and financial institutions like people who’ve been using credit, like credit cards and loans, for a long time without any issues. When you’ve used credit for many years, it gives them lots of information about how you handle debt. This makes it simpler for them to guess your creditworthiness. So, keeping old credit accounts active, even if you’re not currently using them, can help show you’ve been a reliable borrower for a long time.
- Limited Loan Enquiries: Whenever you request a loan, the financial institution check your credit history, a process called a ‘hard enquiry’. This can reduce your credit score, which is important for securing loans or credit in the future. To maintain a healthy credit score, it is advisable to exercise caution when applying for new credit and also have a clear understanding of what is good CIBIL score.
- Error-free Credit Report: A mistake on your credit report can lower your credit score. This is why it’s important to regularly check your credit report through CIBIL login through trustworthy platform such as Bajaj Finserv. By doing so, you can make sure everything on your credit report is accurate. If you see something wrong, like an incorrect debt or payment report, quickly notify CIBIL through CIBIL dispute. Doing so ensures that your credit score is accurately derived from correct information, which can have long-term benefits and enhance your understanding of what is good CIBIL score.
Important Steps For Checking CIBIL Score Through CIBIL Login
- For CIBIL login, visit the official website of Bajaj Finserv at https://www.bajajfinserv.in/check-free-cibil-score.
- Search for the section “Check Your CIBIL Score.”
- Click on the link “Check Score.”
- Then, you will be prompted to enter your mobile number, and after entering your mobile number, you will receive a One Time Password (OTP) for verification.
- Enter the OTP received on your mobile and click the “Submit” button for CIBIL login.
- Fill out the form with accurate details, including your name, Aadhar card number, date of birth, PAN card number, and other required information.
- Read and accept the terms and conditions for CIBIL login.
- Click the “Submit” button again to complete the CIBIL login process.
- Upon submission, your CIBIL score and report will be promptly displayed on the screen.
A high CIBIL score can open the door to various financial possibilities so it is very important to understand the basics of what is a good CIBIL score. A CIBIL score measures your creditworthiness, and having a good score can make it easier for you to get loans or credit cards. If you take the time to learn what is a good CIBIL score and start practicing good credit behaviors, you can keep your credit record strong. The first step towards achieving this is regularly checking your credit report. You can conveniently accomplish this by CIBIL login through the official platform of Bajaj Finserv, enabling you to view your score and monitor your credit well-being.